Question

1. Briefly state the requirements as to the formation of a hire-purchase agreement under the Hire-Purchase Act 1967.

2.         Where the hirer has defaulted in the payment of two successive hire-purchase installments, the owner may enforce his rights under the Hire-Purchase Act to repossess the goods.

State the requirements and precedures imposed by the Hire-Purchase Act on the power of the owner when recovering possession of the goods.

Answer 1

The basic requirements of a hire purchase agreement include a description of goods, cash price of the goods, hiring price, total number of installments, the supplier and purchaser details, right to agreement cancellation, right of hirer as to terminate the contract based on conditions such as non-payment of installations that sound valid, signing of both parties. The owner or the supplier has the power to repossess the goods if the purchaser fails to repay installments on time as per contract agreement or has damaged the goods for no reason before completing the goods installment and other terms and conditions.