§
Manuscript amendments made: In page 107, line 13, leave out:
'45(1) Failure to indicate in advertisements that goods etc.'
and insert:
'45 Advertising credit where goods etc. not.'
§ In page 107, line 22, after previous 'insert oral'.—[Mr. Alan Williams.]
§ Amendment made: No. 55, in page 109, line 7, at end insert:
§ No. 56d, in page 110, line 29, leave out '181' and insert '186'.
§ No. 57, in page 118, line 6, at end insert:
§ `EXAMPLE 24
§ Facts. On 1st March 1975 Z (In England) enters into an agreement with A (an unincorporated body of persons) to bail to A equipment consisting of two components (component P and component Q). The agreement is not a hire-purchase agreement and is for a fixed term of 3 years, so paragraph (a) and (b) of section 15(1) are both satisfied. The rental is payable monthly at a rate of £2,400 905 a year, but the agreement provides that this is to be reduced to £1,200 a year for the remainder of the agreement if at any time during its currency A returns component Q to the owner Z. On 5th May 1976 A is incorporated as A Ltd., taking over A's assets and liabilities. On 1st March 1977, A Ltd., returns component Q. On 1st January 1978, Z and A Ltd. agree to extend the earlier agreement by one year, increasing the rental for the final year by £250 to £1,450.
§ Analysis. When entered into on 1st March 1975, the agreement is a consumer hire agreement. A falls within the definition of "individual" in section 188(1) and if A returns component Q before 1st May 1976 the total rental will not exceed £5,000 (see section 15(1)(c)). When this date is passed without component Q having been returned it is obvious that the total rental must now exceed £5,000. Does this mean that the agreement then ceases to be a consumer hire agreement? The answer is no, because there has been no change in the terms of the agreement, and without such a change the agreement cannot move from one category to the other. Similarly, the fact that A's rights and duties under the agreement pass to a body corporate on 5th May 1976 does not cause the agreement to cease to be a consumer hire agreement (see the definition of "hirer" in section 188(1)).
§ The effect of the modifying agreement of 1st January 1978 is governed by section 82(2), which requires it to be treated as containing provisions reproducing the combined effect of the two actual agreements, that is to say as providing that—
- (a) obligations outstanding on 1st January 1978 are to be treated as outstanding under the modifying agreement;
- (b) the modifying agreement applies at the old rate of hire for the months of January and February 1978, and
- (c) for the year beginning 1st March 1978 A Ltd. will be the bailee of component P at a rental of £1,450.
§ The total rental under the modifying aggrement is £1,850. Accordingly the modifying agreement is a regulated agreement. Even if the total rental under the modifying agreement exceeded £5,000 it would still be regulated because of the provisions of section 82(3)'.—[Mr. Alan Williams.]