2) If the merchant has made a false presentation, the tenant cannot refuse the agreement. He can only sue for damages from 8, paragraph 1, point b). Within fourteen days of entering into a tenancy agreement, the landlord must provide a copy of the contract to the tenant and guarantors – p.5 (1) The lease was developed in the United Kingdom in the 19th century to allow customers with a shortage of money to make an expensive purchase that they would otherwise have to delay or forego. For example, in cases where a buyer cannot afford to pay the price charged for a property as a lump sum, but can pay a percentage in the form of a deposit, a rental agreement allows the buyer to rent the goods for a monthly rent. If an amount equal to the full initial price, plus interest, has been paid in equal tranches, the buyer may then exercise the opportunity to purchase the goods at a predetermined price (usually a nominal amount) or return the goods to the owner. The tenant in a lease-sale agreement may, if informed in writing by the owner of his intention to do so, on the day or before the date covered by the notice, to proceed with the purchase of the merchandise by paying or by giving a notice of purchase to the owner of the net balance of the contract. If the seller has the resources and the legal right to sell the goods on credit (which in most countries usually depends on a licensing system), the seller and owner will be the same person. But most sellers prefer to receive a cash payment immediately. To do this, the seller transfers ownership of the goods to a financial company, usually at a reduced price, and it is that company that makes the goods and sells them to the buyer. This establishment of a third party complicates the transaction. Suppose the seller makes false claims about the quality and reliability of the goods that encourage the buyer to “buy”.

In a conventional sales contract, the seller is liable to the buyer if these representations prove to be false. In this case, the seller issuing the representation is not the owner who sells the goods only after payment of all payments to the buyer. To combat this, some jurisdictions, including Ireland, place the seller and the financial house jointly liable for breaches of the sales contract.