CAP H4 LFN 2004
REPOSSESSION OF GOODS
Repossession of good the subject matter of Hire-Purchase agreement is an
important remedy available to the owner in hire-purchase transactions under the
hire-purchase Act, Cap. H4, Laws of the Federation of Nigeria 2004.
THE MEANING OF HIRE PURCHASE
The meaning of hire purchase has been defined by the hire purchase Act.
According to the provision of Section 20(1) of the Act, contract of hire purchase
is:
“The Bailment of goods in pursuance of an agreement under which
the Bailee may buy the goods or under which the property in the
goods will or may PASS to the Bailee”
Contract of hire purchase can simply be understood as an agreement whereby
the owner of goods transfers possession of the goods to another person called
the hirer for an agreed periodical payment at the end of which the hirer has the
option to buy or return the goods.
NATURE OF HIRE PURCHASE AGREEMENT
Like all other commercial agreement, before a hire purchase agreement can
come into fruition; there must be the following: OFFER AND ACCEPTANCE:
The hirer offers to hire the goods and the owner accepts. The mere signing of
the hire purchase agreement is enough to constitute acceptance of the
agreement.
CONSIDERATION
The consideration in a hire purchase agreement is usually in the firm of
periodical payment.
CAPACITY
The general rule of capacity in the law of contract also applies to a hire
purchase agreement. Thus, an infant cannot be bond in a contract of hire
purchase unless it is a contract of necessaries.TERMINATION OF HIRE PURCHASE AGREEMENT
A Hire Purchase Agreement can be terminated by the parties and by the
statutory provisions. If there is a breach of the agreement by either party the
right to terminate the hire purchase agreement.