s 40 Second-hand goods
Where goods comprised in a hire-purchase agreement are, at the time when the agreement is entered into, second-hand goods then unless— (a) the goods are described in the agreement as second-hand goods; or (b) in any proceedings taken by the owner to enforce the agreement, the court is satisfied that— (i) the hirer was aware at the time when he or his agent signed the agreement that goods comprised or to be comprised therein were second-hand goods; or (ii) the owner was not aware at the time when the agreement was entered into that the goods comprised therein were second-hand goods, the liability of the hirer thereunder shall be reduced by the amount included in the agreement for terms charges. The amount may be set off by the hirer against the amount that would otherwise be due or become due to the owner under the agreement and, to the extent to which it is not so set off may be recovered by the hirer from the owner as a civil debt.