BL – Nov 2015 – L2 – SB – Q6a – Hire Purchase and Consumer Credit Transactions

Explain four duties of the owner in a hire purchase contract.

Question

The major parties in a hire-purchase agreement are the owner and the hirer.

Required:

State and explain FOUR duties of the owner in a hire purchase contract.
(8 Marks)

Answer

Duty to Deliver the Goods:
The owner must deliver the goods that are the subject of the hire-purchase agreement to the hirer in good condition and at the agreed time. The goods should meet the specifications outlined in the contract.
Duty to Provide Clear Title:
The owner must ensure that they have the legal right to lease the goods and provide the hirer with clear title to the goods. This means that the goods should not be encumbered by any liens or claims that could affect the hirer’s use of them.
Duty to Maintain the Goods:
The owner has a duty to maintain the goods in a condition that is fit for use during the period of hire. This includes carrying out any necessary repairs or maintenance to ensure that the goods function as intended.
Duty to Provide Information:
The owner must provide the hirer with all relevant information about the goods, including any warranties, instructions for use, and any potential hazards associated with the use of the goods. This ensures that the hirer can use the goods safely and effectively.