The hire purchase act implies some terms in every hire purchase agreement. One of these terms is merchantability. This is a condition that the goods are of merchantable quality unless they are second hand. There are however some instances when this condition may be dispensed with. Outline two of the instances when merchantability may be dispensed with.

Instances when merchantability may be dispensed with

i) Where the defect complained of is one which the owner could not reasonably have been aware of at the time of the agreement.

ii) Where the hirer examined the goods or a sample thereof and the examination revealed or ought to have revealed such defects.

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