Section 4: Requirements for agreement

4. Requirements for agreement (1) No hire purchase or credit sale agreement shall be entered into unless— (a) the dealer has affixed on or displayed with the goods a label stating the— (i) cash price; (ii) hire purchase or credit price; (iii) down payment; (iv) chargeable price; (v) charges; (vi) repayment period; (vii) monthly instalment; (viii) annual percentage rate; and (ix) monthly flat rate. (b) the hirer or buyer has been allowed to inspect the goods; (c) the hirer or buyer has effected the down payment; and (d) the agreement is incorporated in a deed in the form, or in a form not inconsistent with the form, set out in the Second or Third Schedule, as the case may be. (2) Unless the requirements specified in subsections (1), (3) and (4) have been complied with— (a) no dealer shall be entitled to enforce a hire purchase or a credit sale agreement or any contract of guarantee relating to any of those agreements or, in the case of a hire purchase agreement, any right to recover the goods from the hirer; and [Issue 1] H5 – 4 Revised Laws of Mauritius (b) no security given by the hirer or buyer in respect of money payable under the hire purchase or credit sale agreement or given by a guarantor in respect of money payable under a contract of guarantee shall be enforceable against the hirer or buyer or guarantor by any holder. (3) In any hire purchase agreement— (a) the down payment shall be an amount of not less than the percentage of the cash price specified in the first column of Part I of the First Schedule; and (b) the repayment period shall not exceed the period specified in the second column of Part I of the First Schedule. (4) In any credit sale agreement— (a) the down payment shall be an amount of not less than the percentage of the cash price specified in the first column of Part II of the First Schedule; and (b) the repayment period shall not exceed the period specified in the second column of Part II of the First Schedule. (5) A dealer shall not claim from the hirer or buyer any payment other than the hire purchase price or credit price. (6) For the avoidance of any doubt— (a) the hire purchase price or credit price under subsection (5) shall include the down payment, chargeable price and the charges but shall not include any other costs, expenses or fees, by whatsoever name called; and (b) nothing in subsection (5) shall preclude the dealer from claiming any surcharge or legal costs prescribed under the Courts Act. [S. 4 amended by Act 1 of 1995; Act 26 of 2000.]