The Sanctity of Contracts in English Law - College of Social ...

Moneylenders Acts 31of economic inequality in the contracting parties;but in both instances the net effect may be to interferewith promises or agreements intended by the partiesto have full legal effect. Under the MoneylendersActs, 1900 and 1927, no contract for the repaymentof a moneylender's 24 loan or the payment of interestthereon and no security given in respect of it canbe enforced unless there is a note or memorandumin writing of the contract signed personally by theborrower, 25 and unless a copy thereof was deliveredor sent to the borrower within seven days of themaking of the contract. Furthermore, no suchcontract or security is enforceable if it is provedthat the note or memorandum was not signed by theborrower before the money was lent or the securitygiven. 26HIKE-PURCHASE ACTSAgain the Hire-Purchase Acts, 1938 and 1954,provide that hire-purchase and credit-sale agreements,to which the Acts apply, guarantees relating theretoand the right to recover the hired goods shall not beenforceable by the vendor or owner of the goodscomprised therein unless the requirements of the Actshave been observed. The Acts now apply to agreementsrelating to livestock the total price of whichdoes not exceed £1,000, and to any other agreement24 For definition of "moneylender" for the purposes of theAct, see the Money-lenders Act, 1900, s. 6, as amended byMoneylenders Act, 1927, s. 19 (3).25 Where the borrower is a company the memorandum may besigned by any person acting under its authority: Be BritishGames [1938] Ch. 240.2« Moneylenders Act, 1927, s. 6 (1).