Section 2: Interpretation

2. Interpretation In this Act— “annual percentage rate” means the annual percentage rate prescribed by the Minister under section 3 (3); “authorised officer” means a public officer designated by the Minister for the purpose of ensuring compliance with this Act; “bailment” means an agreement, other than a leasing contract, under which goods are rented to a bailee on a temporary basis in consideration for a monthly rental and property in the goods remains with the bailor; “bailor” means a person who rents goods to a bailee under a bailment; H5 – 1 [Issue 1] Hire Purchase and Credit Sale Act “buyer” means a purchaser of goods under a credit sale agreement; “cash price” means the price at which goods are sold on a cash sale basis, where such price, after deduction of any discount, is paid at the time of the purchase; “chargeable price” means the amount on which charges are imposed and which is equal to the difference between the cash price and the down payment; “charges” means such amount, not exceeding the annual percentage rate or the monthly flat rate, on the chargeable price as may be prescribed by the Minister under section 3 (3); “contract of guarantee”, in relation to a hire purchase or a credit sale agreement, means a contract made at the request, express or implied, of the hirer or buyer, to guarantee the performance of the hirer’s or buyer’s obligations under the agreement and “guarantor” shall be construed accordingly; “credit price” means the total sum, not being in excess of the sum of the cash price and charges accrued, payable by the buyer under a credit sale agreement in order to complete the purchase of goods to which the agreement relates; “credit sale agreement” means an agreement for the sale of goods on credit and under which the dealership in the goods passes to the buyer upon the sale; “dealer”— (a) means a person— (i) who lets or has let goods to a hirer under a hire purchase agreement; (ii) who sells or has sold goods to a buyer under a credit sale agreement; (iii) to whom the dealer’s rights and liabilities under a hire purchase or credit sale agreement have passed by assignment or by operation of law; (b) includes a lending and financing agency; (c) does not include a bailor; “down payment” means an amount referred to in section 4 (3) (a) and (4) (a); “goods”— (a) means, subject to paragraph (b), the goods and services specified in the Fourth Schedule; (b) does not include, with respect to a hire purchase agreement, an air ticket; [Issue 1] H5 – 2 Revised Laws of Mauritius “hire purchase agreement”— (a) means an agreement for the sale of goods under which the property in the goods shall pass to the hirer upon payment by instalments of the whole amount due; (b) includes any credit or financing agreement with a lending and financing agency for the purchase of goods; “hire purchase price” means the total sum payable by the hirer under a hire purchase agreement in order to complete the purchase of goods to which the agreement relates, exclusive of any sum payable as a penalty or as compensation or damages for a breach of the agreement, and not exceeding the sum of the cash price and charges accrued; “hirer” means a hire purchaser; “leasing contract” means a leasing contract entered into by a company providing lease financing and which is approved as a tax incentive company under the First Schedule to the Income Tax Act; “lending and financing agency” means a body corporate whose business is that of money lending or fi elates, exclusive of any sum payable as a penalty or as compensation or damages for a breach of the agreement, and not exceeding the sum of the cash price and charges accrued; “hirer” means a hire purchaser; “leasing contract” means a leasing contract entered into by a company providing lease financing and which is approved as a tax incentive company under the First Schedule to the Income Tax Act; “lending and financing agency” means a body corporate whose business is that of money lending or financing of hire purchase and credit sale transactions or similar transactions; “Minister” means the Minister to whom responsibility for the subject of commerce is assigned; “monthly flat rate” means the monthly flat rate prescribed by the Minister under section 3 (3); “repayment period” means the maximum number of months allowed by a dealer to a hirer or buyer under a hire purchase or credit sale agreement for the payment of the balance remaining due after the down payment has been effected; “surcharge” means an amount payable for the late payment of an instalment, which shall not exceed such rate as may be prescribed by the Minister under section 3 (3). [S. 2 amended by Act 15 of 1988; Act 29 of 1989; Act 1 of 1995; Act 26 of 2000; s. 17 of Act 14 of 2005 w.e.f. 21 April 2005.]