HC Deb 24 June 1964 vol 697 cc495-7

8.15 p.m.

Mr. D. Price

I beg to move, in page 13, line 3, at the end to insert: (2) The following subsection shall be substituted for section 8(2) of the principal Act (whereby a condition is implied where the hirer makes known the particular purpose for which the goods are required):— (2) Where the hirer, whether expressly or by implication,—

  1. (a) has made known to the owner, or to a servant or agent of the owner, the particular purpose for which the goods are required, or
  2. (b) in the course of any antecedent negotiations has made that purpose known to any other person by whom those negotiations were conducted, or to a servant or agent of such a person,
there shall be an implied condition that the goods shall be reasonably fit for that purpose. Section 24(2) of the Hire-Purchase Act 1964 shall apply for the purposes of this subsection as it applies for the purposes of Part I of that Act. During the Committee stage, the hon. Member for Sheffield, Hillsborough (Mr. Darling) raised a point about Section 8(2) of the 1938 Act, which provides that where the hirer makes known the particular purpose for which the goods are required there shall be an implied condition that the goods are reasonably fit for that purpose.

The case which the hon. Member for Hillsborough raised presumed that the dealer was, in fact, the agent of the finance house for the purpose of receiving a communication of the purpose for which the goods were required. Subsequently I wrote to him saying that I was satisfied that any subsequent change in relationship between the dealer and the finance house would not affect the position; the finance house would remain bound by the implied condition.

However, I have since re-examined Section 8(2) and think that it can be improved. Usually the dealer is not the agent of the finance house for receiving a communication of the purpose for which the goods are required. A hirer who has made a purpose known to the dealer will, therefore, not normally have the benefit of the implied condition. To do so, he would have to make that purpose specifically known to the finance house.

The Amendment provides that the condition of fitness for a particular purpose is implied if the hirer makes that purpose known either to the owner or a person who conducted any antecedent negotiation. This person is normally the dealer. In effect, the Amendment makes the dealer the agent of the finance house for receiving a communication of that purpose.

It is interesting to observe that since the Molony Report was issued the Law Reform Committee has recommended that the dealer shall be the agent of the owner in respect of representations about the goods, and this is being implemented in Clause 10. It is an obvious extension of this principle to make the dealer the agent of the owner for the receipt of a communication about the specific purpose for which the goods are required.

Mr. Darling

All that I want to say is, "Thank you".

Amendment agreed to.