CHAPTER 46:03
HIRE-PURCHASE

ARRANGEMENT OF SECTIONS

   SECTION

   1.   Short title

   2.   Interpretation and application

   3.   Requirements as to negotiations prior to making of agreement

   4.   Requirements as to form of agreement

   5.   What agreements must contain

   6.   Invalidity of certain provisions

   7.   Certain agreements invalid in certain circumstances

   8.   Inducement to enter into agreements

   9.   Buyer entitled to statement of account, etc., and seller to information as to whereabouts of goods

   10.   Cession or hypothecation of and authority to collect periodical income

   11.   Negotiable instruments

   12.   Limitation of seller's right to enforce certain provisions of agreement

   13.   Buyer's right to be re-instated after return of goods to seller

   14.   Buyer's right to terminate agreement and to pay instalments before due date

   15.   Buyer's rights upon termination, rescission or breach of agreement

   16.   Valuation of goods

   17.   Powers of court

   18.   Decrees of civil imprisonment and garnishee orders

   19.   Jurisdiction

   20.   Waiver of rights by buyer

   21.   Regulations

Proc. 25, 1961,
HMC Order 1, 1963,
L.N. 84, 1966.

An Act to make provision for the regulation of hire-purchase agreements and of instalment sales subject to resolutive conditions and for matters incidental thereto.

[Date of Commencement: 26th April, 1961]

1.   Short title

   This Act may be cited as the Hire-Purchase Act.

2.   Interpretation and application

   (1) In this Act, unless the context otherwise requires-

   "agreement" means a hire-purchase agreement or an instalment sale agreement;

   "buyer" or "seller" means the person who, in terms of any agreement, is the buyer or the seller or the hirer or lessor, as the case may be;

   "cash price", in relation to any goods, means the price stated in respect of those goods under section 5(1)(a);

   "court" means a magistrate's court or the High Court, as the case may be, but does not include a customary court;

   "hire-purchase agreement" means any agreement whereby goods are sold subject to the condition that the ownership in such goods shall not pass merely by the transfer of the possession of such goods, and the purchase price is to be paid in instalments, two or more of which are payable after such transfer; and includes any other agreement which has or agreements which together have the same import, whatever form such agreement or agreements may take:

   Provided that any agreement which or agreements which together provide for the letting and hiring of goods-

   (i)   with the right to purchase such goods only after two or after more than two instalments subsequent to such transfer have been paid in respect thereof; or

   (ii)   with the right, after two or after more than two instalments subsequent to such transfer have been paid in respect thereof, to continue or renew from time to time such letting and hiring at a nominal rental, or to continue or renew from time to time the right to be in possession of the goods, without any further payment or against payment of a nominal periodical or other amount,

shall, whether or not the agreement or agreements may at any time be terminated by either party or one of the parties, be deemed, for the purposes of this Act, to be of the said import;

   "instalment sale agreement" means any agreement of purchase and sale whereby ownership in the goods sold passes upon delivery, and the purchase price is to be paid in instalments, two or more of which are payable after delivery, and under which the seller would be entitled to the return of the goods sold if the buyer should fail to comply with any one or more provisions thereof; and includes any other agreement which has or agreements which together have the same import, whatever form such agreement or agreements may take;

   "purchase price" means the total sum payable under any agreement, to the seller by the buyer, exclusive of any sum payable in terms of the agreement as a penalty or as damages for the breach thereof or by way of interest upon instalments which are in arrear.

   (2) If any seller has agreed that any part of the purchase price may be discharged otherwise than by the payment of money, any such discharge shall, subject to the provisions of section 7, be deemed to be a payment of that part of the purchase price.

   (3) The provisions of this Act shall-

   (a)   apply to agreements relating to movables, entered into after the commencement of this Act under which the purchase price does not exceed P4 000; and

   (b)   not apply to any agreement under which the Government is the seller, or to any agreement in respect of the sale of a movable belonging to a class or group of prescribed movables.

   (4) Sections 9, 12, 13 and 17 shall, subject to the provisions of subsection (3), apply in respect of agreements in force at and entered into before the commencement of this Act.

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