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Brutus Okeka Purchased a radio from Dancing spoon ltd on hire purchase terms. The purchase price was sh. 45000. He paid a down payment of...


CPA part 1 section 1
CS part 1 section 1
CCP part 1 section 1
Business law.
20 May 2019

Question one (a) 10marks



Under section 15(1) of the act, if at any time 2/3 of the hire purchase price is paid by the hirer or any other person on his behalf, the owner cannot reposses goods otherwise than the court action.
If the owner reposses goods in contravention to this section:
1) The hire purchase agreement terminates.
2) The hirer is discharged from all the liability under the agreement.
3) The hirer is entilted to all sum paid under the contract of guarantee or under the security given.
4) The guarantor is entilted to recover all sum paid under the contract of guarantee or under security given.

Advice to Brutus Okaka.
-He should reclaim all the sum he paid under the agreement since he had paid 2/3rds of the hire purchase price. This provision was intended to protect the hirer from common law practice of 'snatch back' under which the owner will reposses the goods back at any time.
Ayoo1 answered the question on October 28, 2020 at 15:10

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