Hire purchase and the Pactum Reservati Dominii in Maltese law

Abstract

The contract of hire purchase along with the 'pactum reservati dominii' is now to be found in every sphere of man's daily transactions. Its use is so common that one is surprised by the fact that in Malta there are no provisions of the law to regulate it. 'Il-ligi tagħna ma tikkuntemplaħx.' In the contract of hire purchase, the hire-purchaser agrees to pay the owner of the article a certain sum of money periodically, reserving, however, to himself the option of either paying the whole price, thus becoming owner, or not going on with the payment of instalments, thus losing the sums he has already paid and returning the article from his possession to that of the owner. However, ownership does not pass until the complete payment of the price. In a judgement decided locally, it was held that : 'Fil-kuntratt taħt il-'hire purchase system', it-trasferiment tal-propjeta huwa differit u suggett għal-ħlas tal prezz kollu."