This problem is based on repossession of goods by the owner in a hire purchase agreement.
In this case Kinyago had paid 23 of the hire purchase price but Malipo Rahisi Ltd
repossessed the goods.
The fundamental question is whether Malipo Rahisi Ltd was entitled to reposes the goods
on account of Kinyago's default.
The answer is in the negative as Kinyago has already paid 23 of the hire purchase price.
The repossession of the goods by the company is in contravention of the provisions of the
Hire Purchase Act, which provides inter alia that in such a case, the goods cannot be
repossessed otherwise than by court action.
In this case the contravention of the provisions of the Act attract certain consequences:
(i) The hire purchase agreement is terminated.
(ii) The hirer is discharged from all liability under the agreement.
(iii) Kinyago is entitled to recover by action all sums paid under the agreement or
under any security given.
(iv) The guarantor is entitled to recover by action from Malipo Rahisi Ltd, all sums
paid under the contract of guarantee or under any security given.
maurice.mutuku answered the question on April 24, 2018 at 14:42
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