Section 3: Application of Act

3. Application of Act (1) (a) This Act shall apply to all hire purchase agreements and, wherever specified, to credit sale agreements. (b) Any sale of goods or any transaction, other than a leasing contract, involving the transfer, or any option or agreement for the transfer, of property in goods, where the term of payment is by instalments, shall be deemed to be a hire purchase or a credit sale under this Act. (2) There shall be stipulated in every hire purchase or credit sale agreement— (a) the cash price of the goods; (b) the down payment; (c) the total charges and the monthly charges; (d) the hire purchase price or the credit price, as the case may be; H5 – 3 [Issue 1] Hire Purchase and Credit Sale Act (e) the payment of the balance due by way of monthly instalments over a period not exceeding the respective periods specified in the second column of Parts I and II of the First Schedule; (f) the annual percentage rate; (g) the monthly flat rate; and (h) any surcharge. (3) The Minister may, by regulations, prescribe— (a) the charges specified in subsection (2) (c); (b) the annual percentage rate specified in subsection (2) (f); (c) the monthly flat rate specified in subsection (2) (g); and (d) the surcharge specified in subsection (2) (h). (4) Where an agreement in respect of a bailment provides for the transfer, or any option or agreement for the transfer, of property in the goods to the bailee, such agreement shall be deemed to be a hire purchase agreement under this Act. [S. 3 amended by Act 15 of 1988; Act 1 of 1995; Act 26 of 2000.]