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Identify three consequences of not registering a hire purchase agreement Consequences of not registering a hire purchase agreement The agreement cannot be enforced by any person against the hirer. Any contract of guarantee made in relation to the hire purchase agreement is also unenforceable. The owner cannot enforce the right to reposes the goods from
Explain the term hire “purchase” The hire purchase act implies some terms in every hire purchase agreement. One of these terms is merchantability. This is a Explanation of the term hire “purchase” Hire purchase is a method of buying goods in which the purchaser takes possession as soon as he has paid an initial installment
Explain the meaning of the term “hire purchase agreement” Meaning of hire purchase agreement Hire purchase is a method of buying goods in which the purchaser takes possession as soon as he has paid an initial installment of the price, that is, deposit and obtains ownership when he has paid all instalments.
Where a mortgagor defaults in repayment of the mortgage, the mortgagee has a right to appoint a receiver to realise the assets of the mortgagor. Highlight the order of priority of payments by the receiver The order of priority of payments by the receiver Cancellation: under section 63 (1) of the Act, if a bill
Distinguish in three ways between a “hire purchase agreement” and a “conditional sale agreement” Hire purchase conditional sale agreement – The hirer has the option to terminate the agreement at any time by giving notice in writing to owner. – Hire purchase is intended to protect the owners to the goods should the
Outline the legal effects of non-registration of a hire purchase agreement Effects of non-registration of a hire purchase agreement The agreement becomes void The owner cannot enforce his rights against the hirer. The owner is liable to return all the money paid back to hirer. Any contract of guarantee relating to the hire purchase agreement
Explain the information that must be contained in the written memorandum of a hire purchase agreement for the agreement to be enforceable The following information must be contained in a written memorandum of hire purchase A statement of the hire-purchase price and the cash price of the goods to which the agreement relates. The amount
Describe three obligations of a hirer who terminates a hire purchase agreement before payment of the full hire purchase price Obligations of hirer who terminates a hire purchase agreement before payment of the full hire purchase price To pay the hire installments To take reasonable care of the goods To inform the owner where the
Where goods have been let under a hire-purchase agreement and two-thirds of the hire purchase price has been paid the owner shall not enforce any right to recover possession of the goods from the hirer otherwise than by suit. Explain three consequences of contravention of the above provision by the owner. Consequences of contravening the
Describe five duties of the owner of goods in a hire purchase agreement Describe five duties of the owner of goods in a hire purchase agreement Notification of Cash Price: The owner has to notify the hirer of the cash price of the goods in a prescribed form. Disclosure of defects: The owner is bound
