BL – May 2022 – L1 – SB – Q3c – Hire Purchase and Consumer Credit Transactions

State two rights of a hirer under a hire purchase contract.

Question

Bola has hired a car under a contract of hire purchase from CAB Car Rentals and wants to know if he has any rights under the contract.

Required:
State TWO rights of Bola under the contract.

Answer

Right to Terminate the Agreement: Bola has the right to terminate the hire purchase agreement before the final payment is made, provided certain conditions are met, such as giving the required notice and paying off a certain portion of the cost.
Right to Quiet Possession: Bola has the right to use and possess the vehicle without interference from the owner or any other third party, as long as he complies with the terms of the hire purchase agreement.