- 6 Marks
BCL – May 2018 – L1 – Q3b – Sale of Goods/Hire Purchase
Discuss the basic requirements of a Hire Purchase agreement and the steps a hirer should take upon termination.
Question
b) Komosa Limited entered into a Hire- Purchase agreement with Mr. Gyeabour over a car. The agreement was to last for a period of 4 years of monthly instalment. The instalment arrangements went on for three and half years till Mr.Gyeabour decided to terminate the arrangement and stopped paying the instalment. For the remaining period, the Company had no news of Mr. Gyeabour or the car. When the car was later found, the air conditioning compartment was in a bad state of disrepair. The Company now intends to sue Mr. Gyeabour who has resurfaced. Mr. Gyeabour is now pleading with the Company for mercy.
Required:
i) Describe TWO basic requirements that should be outlined in a Hire Purchase Agreement. (4 marks)
ii) Explain to Mr. Gyeabour TWO steps he should have taken in respect of the termination and the damaged car under the Hire-Purchase Act, 1974 NRCD 292. (6 marks)
Find Related Questions by Tags, levels, etc.
- Tags: Damaged Goods, Hire Purchase, Termination
- Level: Level 1
- Topic: Sale of goods/hire purchase
- Series: MAY 2018