Outline five provisions which govern termination of a hire purchase agreement by the hirer
Provisions governing termination of hire purchase agreement by the hirer
- The hirer may terminate the agreement at any time before the final payment becomes due.
- He may do so by returning the goods to the owner.
- By giving the owner written notice of termination of the agreement.
- He is, however, liable to pay all instalments due by that time, together with the sum, if any, as will make his total payment not less than half of the total purchase price, unless a lesser sum is specified in the agreement.
- He will also pay damages if he has failed to take reasonable care of the goods.
- He must return the goods at his own expense to the premises of the owner, or to premises directed by the owner but at the owner’s expense