P-40.1, r. 3 - Regulation respecting the application of the Consumer Protection Act

Section 41 Disposition versions

2019-08-01

41. An instalment sale contract that contains a clause of forfeiture of benefit of the term must, in addition to the clauses prescribed by sections 61.0.13 and 61.0.14 and the clause prescribed in section 38 or 39, as the case may be, and immediately after the reserve of ownership clause, contain the following compulsory clause:

“Clause required under the Consumer Protection Act.

(Instalment sale contract containing a clause of forfeiture of benefit of the term)

If the consumer fails to perform his obligation in the manner prescribed in this contract, the merchant may:

(a)  either exact immediate payment of the instalments due;

(b)  or avail himself of the clause of forfeiture of benefit of the term prescribed in this contract.

Before availing himself of that clause, the merchant must forward the consumer a notice in writing and a statement of account. Within 30 days following the receipt by the consumer of the notice and the statement of account, the consumer may:

i.  either remedy the fact that he is in default;

ii.  or present an application to the court to have the terms and conditions of payment prescribed in this contract changed;

iii.  or present an application to the court to obtain permission to return the goods that form the object of the contract to the merchant.

If the consumer returns the goods to the merchant with the permission of the court, his obligation under this contract is extinguished and the merchant is not bound to return to him the payments he has received from him;

(c)  or retake possession of the goods that form the object of the contract.

Before retaking possession of the goods, the merchant must give the consumer a notice in writing 30 days during which the consumer may, as he chooses:

i.  either remedy the fact that he is in default;

ii.  or return the goods to the merchant.

If the consumer returns the goods to the merchant, his obligation under this contract is extinguished and the merchant is not bound to return to him the payments he has received from him.

If, before his default, the consumer has paid at least one-half of the aggregate of the total obligation and of the down payment, the merchant may not recover possession of the goods unless he first obtains the permission of the court.

It is in the consumer’s interest to refer to sections 104 to 110 and 138 to 142 of the Consumer Protection Act (chapter P-40.1) and, where necessary, to communicate with the Office de la protection du consommateur.”.

R.R.Q., 1981, c. P-40.1, r. 1, s. 41; I.N. 2016-01-01 (NCCP); O.C. 994-2018, s. 25.

2016-01-01

41. An instalment sale contract that contains a clause of forfeiture of benefit of the term must, in addition to the clauses prescribed in Schedule 5 of the Act and the clause prescribed in section 38 or 39, as the case may be, and immediately after the reserve of ownership clause, contain the following compulsory clause:

“Clause required under the Consumer Protection Act.

(Instalment sale contract containing a clause of forfeiture of benefit of the term)

If the consumer fails to perform his obligation in the manner prescribed in this contract, the merchant may:

(a)  either exact immediate payment of the instalments due;

(b)  or avail himself of the clause of forfeiture of benefit of the term prescribed in this contract.

Before availing himself of that clause, the merchant must forward the consumer a notice in writing and a statement of account. Within 30 days following the receipt by the consumer of the notice and the statement of account, the consumer may:

i.  either remedy the fact that he is in default;

ii.  or present an application to the court to have the terms and conditions of payment prescribed in this contract changed;

iii.  or present an application to the court to obtain permission to return the goods that form the object of the contract to the merchant.

If the consumer returns the goods to the merchant with the permission of the court, his obligation under this contract is extinguished and the merchant is not bound to return to him the payments he has received from him;

(c)  or retake possession of the goods that form the object of the contract.

Before retaking possession of the goods, the merchant must give the consumer a notice in writing 30 days during which the consumer may, as he chooses:

i.  either remedy the fact that he is in default;

ii.  or return the goods to the merchant.

If the consumer returns the goods to the merchant, his obligation under this contract is extinguished and the merchant is not bound to return to him the payments he has received from him.

If, before his default, the consumer has paid at least one-half of the aggregate of the total obligation and of the down payment, the merchant may not recover possession of the goods unless he first obtains the permission of the court.

It is in the consumer’s interest to refer to sections 104 to 110 and 138 to 142 of the Consumer Protection Act (chapter P-40.1) and, where necessary, to communicate with the Office de la protection du consommateur.”.

R.R.Q., 1981, c. P-40.1, r. 1, s. 41; I.N. 2016-01-01 (NCCP).

2012-09-01

41. An instalment sale contract that contains a clause of forfeiture of benefit of the term must, in addition to the clauses prescribed in Schedule 5 of the Act and the clause prescribed in section 38 or 39, as the case may be, and immediately after the reserve of ownership clause, contain the following compulsory clause:

“Clause required under the Consumer Protection Act.

(Instalment sale contract containing a clause of forfeiture of benefit of the term)

If the consumer fails to perform his obligation in the manner prescribed in this contract, the merchant may:

(a)  either exact immediate payment of the instalments due;

(b)  or avail himself of the clause of forfeiture of benefit of the term prescribed in this contract.

Before availing himself of that clause, the merchant must forward the consumer a notice in writing and a statement of account. Within 30 days following the receipt by the consumer of the notice and the statement of account, the consumer may:

i.  either remedy the fact that he is in default;

ii.  or present a motion to the court to have the terms and conditions of payment prescribed in this contract changed;

iii.  or present a motion to the court to obtain permission to return the goods that form the object of the contract to the merchant.

If the consumer returns the goods to the merchant with the permission of the court, his obligation under this contract is extinguished and the merchant is not bound to return to him the payments he has received from him;

(c)  or retake possession of the goods that form the object of the contract.

Before retaking possession of the goods, the merchant must give the consumer a notice in writing 30 days during which the consumer may, as he chooses:

i.  either remedy the fact that he is in default;

ii.  or return the goods to the merchant.

If the consumer returns the goods to the merchant, his obligation under this contract is extinguished and the merchant is not bound to return to him the payments he has received from him.

If, before his default, the consumer has paid at least one-half of the aggregate of the total obligation and of the down payment, the merchant may not recover possession of the goods unless he first obtains the permission of the court.

It is in the consumer’s interest to refer to sections 104 to 110 and 138 to 142 of the Consumer Protection Act (chapter P-40.1) and, where necessary, to communicate with the Office de la protection du consommateur.”.

R.R.Q., 1981, c. P-40.1, r. 1, s. 41.