Hire Purchase and Consumer Credit Transactions – Page 2

BL – Nov 2020 – L1 – SB – Q3c – Hire Purchase and Consumer Credit Transactions

Define hire purchase and advise on rights after repossession under partial payment.

Question

A hire purchase agreement is a transaction with strict rules and regulations.

Required:
i. What is hire purchase?
ii. Case Scenario:
Ronke entered into a hire purchase agreement to buy a Nissan Micra car belonging to Fred. Ronke paid the sum of N900,000 out of the agreed price of N1,000,000. After unsuccessful demands by Fred for the balance of N100,000 on the car, Fred seized the car in front of Ronke’s house.

Advise Ronke on her rights, if any.

Answer

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Tags: Buyer’s Rights, Consumer Rights, Hire Purchase, Payment Default, Repossession
Level: Level 1

Topic: Hire Purchase and Consumer Credit Transactions
Series: NOV 2020

BL – Nov 2020 – L1 – SA – Q13 – Hire Purchase and Consumer Credit Transactions

Objective question on the form of consideration in hire purchase agreements.

Question

13. The consideration for a hire purchase is
A. Payment of shares
B. Price of goods
C. Installmental payment
D. Bill of exchange
E. Cost of goods

Answer

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Tags: Consideration, Hire Purchase, Installment Payment, Payment Terms
Level: Level 1

Topic: Hire Purchase and Consumer Credit Transactions
Series: NOV 2020

BL – May 2012 – L1 – SA – Q7 – Hire Purchase and Consumer Credit Transactions

State the type of goods covered by the Hire Purchase Act 2004.

Question

State the type of goods to which the Hire Purchase Act 2004 is applicable irrespective of the amount involved.

Answer

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Tags: Business Law, Consumer Credit, Hire Purchase
Level: Level 1

Topic: Hire Purchase and Consumer Credit Transactions
Series: MAY 2012

BL – May 2012 – L1 – SA – Q15 – Hire Purchase and Consumer Credit Transactions

Identify the parties involved in a hire purchase relationship.

Question

A hire purchase relationship is one between a:

A. Hiree and a hirer
B. Hiree and a bank
C. Seller and a servant
D. Master and a servant
E. Bailor and a bailee

Answer

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Tags: Business Law, Consumer Credit, Hire Purchase
Level: Level 1

Topic: Hire Purchase and Consumer Credit Transactions
Series: MAY 2012

BL – May 2012 – L1 – SA – Q6 – Hire Purchase and Consumer Credit Transactions

Identifying the obligation that does not fall under a hirer's responsibility.

Question

Which of the following is NOT a hirer’s obligation?

A. To take delivery of the goods
B. To take proper care of the goods
C. Not to part with the possession of the goods
D. To report to the owner every week
E. To return the goods to the owner when the agreement is terminated

Answer

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Tags: Business Law, Consumer Credit, Hire Purchase
Level: Level 1

Topic: Hire Purchase and Consumer Credit Transactions
Series: MAY 2012

BL – Nov 2011 – L1 – SB – Q3b – Hire Purchase and Consumer Credit Transactions

Defining a hire purchase agreement and explaining its essential features.

Question

Define “hire purchase agreement” and explain THREE of its essential features.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Bailment, Contract, Hire Purchase, Property in Goods
Level: Level 1

Topic: Hire Purchase and Consumer Credit Transactions
Series: NOV 2011

FA – Nov 2011 – L1 – SA – Q19 – Hire Purchase and Consumer Credit Transactions

This question asks about the interest payable in the first year on a hire purchase agreement.

Question

A car with a cash price of N750,000 was acquired on hire purchase on 1 January 2010. The agreement required an initial deposit of N150,000 and three equal yearly installments payable effective 31 December 2010. Interest of 15% is payable on the balance outstanding at the end of each year. How much interest is payable at the end of first year?
A. N22,500
B. N45,000
C. N90,000
D. N112,500
E. N135,000

Answer

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Tags: Hire Purchase, Interest Calculations
Level: Level 1

Topic: Hire Purchase and Consumer Credit Transactions
Series: NOV 2011

BL – Nov 2012 – L1 – SA – Q11 – Hire Purchase

Identify the goods covered under the Hire Purchase Act.

Question

State the type of goods to which the Hire Purchase Act is applicable irrespective of the amount involved.

Answer

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Tags: Hire Purchase, Motor Vehicles
Level: Level 1

Topic: Hire Purchase and Consumer Credit Transactions
Series: NOV 2012

BL – Nov 2012 – L1 – SA – Q12 – Hire Purchase

Identify which is NOT a duty of the hirer.

Question

Which of the following is NOT a duty of the hirer?
A. To accept delivery of the goods
B. To ensure that he gives a weekly report to the seller
C. To take reasonable care of the goods
D. To pay the installments when due
E. To redeliver the goods to the owner or his agent, upon the termination of the hire purchase contract

Answer

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Tags: Consumer Rights, Hire Purchase
Level: Level 1

Topic: Hire Purchase and Consumer Credit Transactions
Series: NOV 2012

BL – May 2013 – L1 – SB – Q3A – Hire Purchase and Consumer Credit Transactions

Explain three provisions voided by the Hire Purchase Act in hire purchase agreements.

Question

Explain THREE of the provisions declared void by the Hire Purchase Act in any hire purchase agreement.

Answer

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Tags: Contract Law, Hire Purchase Agreement, Void Provisions
Level: Level 1

Topic: Hire Purchase and Consumer Credit Transactions
Series: MAY 2013

BL – May 2013 – L1 – SA – Q12 – Hire Purchase and Consumer Credit Transactions

This question tests knowledge of a transaction with an option to buy goods.

Question

A transaction in which the person in possession of goods has an option to buy the goods or terminate the relationship and return the goods to the owner at any time is called ___________.

Answer

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Tags: Financial Transactions, Hire Purchase
Level: Level 1

Topic: Hire Purchase and Consumer Credit Transactions
Series: MAY 2013

BL – Nov 2015 – L2 – SB – Q6b – Hire Purchase and Consumer Credit Transactions

Explain two rights of a hirer under a hire purchase transaction.

Question

It is possible for a person to have possession of a property when he has not fully paid for it. Such a facility is possible through hire purchase as a form of commercial transaction.

Required:

Explain TWO rights of a hirer under a hire purchase transaction.
(4 Marks)

Answer

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Tags: Commercial Transactions, Hire Purchase, Hirer Rights
Level: Level 1

Topic: Hire Purchase and Consumer Credit Transactions
Series: NOV 2015

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

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Tags: Hire Purchase, Hire Purchase Agreement, Owner Duties
Level: Level 1

Topic: Hire Purchase and Consumer Credit Transactions
Series: NOV 2015

BL – May 2014 – L1 – SA – Q9 – Hire Purchase and Consumer Credit Transactions

Understanding the term for possession in hire purchase after payment.

Question

In hire purchase transaction, the hirer is put in possession of goods on payment of the consideration known as ____________.

Answer

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Tags: Consideration, Hire Purchase, Possession
Level: Level 1

Topic: Hire Purchase and Consumer Credit Transactions
Series: MAY 2014

BL – Nov 2013 – L1 – SB – Q3c – Hire Purchase, Consumer Credit Transactions

Explaining two key characteristics of hire purchase transactions.

Question

Explain briefly TWO characteristics of a hire purchase transaction. (5 Marks)

Answer

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Tags: Bailor and Bailee Relationship, Contract Law, Hire Purchase
Level: Level 1

Topic: Hire Purchase and Consumer Credit Transactions
Series: NOV 2013

BL – Nov 2013 – L1 – SA – Q9 – Hire Purchase and Consumer Credit Transactions

Identifies the relationship between the owner and the hirer in a hire purchase transaction.

Question

The relationship between the owner and the hirer in a hire purchase transaction is that of _____________________.

Answer

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Tags: Consumer Credit, Hire Purchase, Legal Relationships, Short Answer
Level: Level 1

Topic: Hire Purchase and Consumer Credit Transactions
Series: NOV 2013

BL – Nov 2013 – L1 – SA – Q9 – Hire Purchase and Consumer Credit Transactions

Determines the basis of possession in a hire purchase transaction.

Question

In Hire Purchase transactions, goods are in possession of the hirer in consideration of

A. Instalmental payments
B. Full payments
C. Non payments
D. Future payment
E. The close relationship between the parties

Answer

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Tags: Consumer Credit, Contract Law, Hire Purchase, Multiple Choice
Level: Level 1

Topic: Hire Purchase and Consumer Credit Transactions
Series: NOV 2013

BL – Nov 2015 – L1 – SA – Q18 – Hire Purchase and Consumer Credit Transactions

Identifying duties not required of a hirer in a Hire Purchase contract.

Question

In Hire Purchase contract, the duties of the hirer include the following EXCEPT
A. Acceptance of delivery
B. Duty of care of the goods
C. Payment of instalment
D. Duty to buy the goods
E. Duty not to sell the goods

Answer

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Tags: Consumer Credit, Hire Purchase, Legal Duties, Multiple Choice
Level: Level 1

Topic: Hire Purchase and Consumer Credit Transactions
Series: NOV 2015

BL – May 2018 – L1 – SA – Q15 – Hire Purchase and Consumer Credit Transactions

Identify the party with the option to purchase goods in a hire purchase agreement.

Question

The party who has the option to purchase goods in a Hire Purchase Agreement is the
A. Hirer
B. Hiree
C. Owner
D. Insurance company
E. Bailee

Answer

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Tags: Contracts, Hire Purchase, Ownership
Level: Level 1

Topic: Hire Purchase and Consumer Credit Transactions
Series: MAY 2018

BL – Nov 2014 – L1 – SB – Q6b – Hire Purchase and Consumer Credit Transactions

State and explain two pieces of information required in a hire purchase memorandum under the Hire Purchase Act of 1965.

Question

One of the innovations introduced into the hire purchase contract by the Hire Purchase Act of 1965 is the preparation of a memorandum evidencing the agreement.
Required:
State and explain any TWO pieces of information that a hire purchase memorandum must contain.
(Total 5 Marks)

Answer

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Tags: Contract Law, Hire Purchase, Memorandum
Level: Level 1

Topic: Hire Purchase and Consumer Credit Transactions
Series: NOV 2014

Topic: Hire Purchase and Consumer Credit Transactions

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BL – Nov 2020 – L1 – SB – Q3c – Hire Purchase and Consumer Credit Transactions

Define hire purchase and advise on rights after repossession under partial payment.

You're reporting an error for "BL – Nov 2020 – L1 – SB – Q3c – Hire Purchase and Consumer Credit Transactions"

BL – Nov 2020 – L1 – SA – Q13 – Hire Purchase and Consumer Credit Transactions

Objective question on the form of consideration in hire purchase agreements.

You're reporting an error for "BL – Nov 2020 – L1 – SA – Q13 – Hire Purchase and Consumer Credit Transactions"

BL – May 2012 – L1 – SA – Q7 – Hire Purchase and Consumer Credit Transactions

State the type of goods covered by the Hire Purchase Act 2004.

You're reporting an error for "BL – May 2012 – L1 – SA – Q7 – Hire Purchase and Consumer Credit Transactions"

BL – May 2012 – L1 – SA – Q15 – Hire Purchase and Consumer Credit Transactions

Identify the parties involved in a hire purchase relationship.

You're reporting an error for "BL – May 2012 – L1 – SA – Q15 – Hire Purchase and Consumer Credit Transactions"

BL – May 2012 – L1 – SA – Q6 – Hire Purchase and Consumer Credit Transactions

Identifying the obligation that does not fall under a hirer's responsibility.

You're reporting an error for "BL – May 2012 – L1 – SA – Q6 – Hire Purchase and Consumer Credit Transactions"

BL – Nov 2011 – L1 – SB – Q3b – Hire Purchase and Consumer Credit Transactions

Defining a hire purchase agreement and explaining its essential features.

You're reporting an error for "BL – Nov 2011 – L1 – SB – Q3b – Hire Purchase and Consumer Credit Transactions"

FA – Nov 2011 – L1 – SA – Q19 – Hire Purchase and Consumer Credit Transactions

This question asks about the interest payable in the first year on a hire purchase agreement.

You're reporting an error for "FA – Nov 2011 – L1 – SA – Q19 – Hire Purchase and Consumer Credit Transactions"

BL – Nov 2012 – L1 – SA – Q11 – Hire Purchase

Identify the goods covered under the Hire Purchase Act.

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BL – Nov 2012 – L1 – SA – Q12 – Hire Purchase

Identify which is NOT a duty of the hirer.

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BL – May 2013 – L1 – SB – Q3A – Hire Purchase and Consumer Credit Transactions

Explain three provisions voided by the Hire Purchase Act in hire purchase agreements.

You're reporting an error for "BL – May 2013 – L1 – SB – Q3A – Hire Purchase and Consumer Credit Transactions"

BL – May 2013 – L1 – SA – Q12 – Hire Purchase and Consumer Credit Transactions

This question tests knowledge of a transaction with an option to buy goods.

You're reporting an error for "BL – May 2013 – L1 – SA – Q12 – Hire Purchase and Consumer Credit Transactions"

BL – Nov 2015 – L2 – SB – Q6b – Hire Purchase and Consumer Credit Transactions

Explain two rights of a hirer under a hire purchase transaction.

You're reporting an error for "BL – Nov 2015 – L2 – SB – Q6b – Hire Purchase and Consumer Credit Transactions"

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

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

You're reporting an error for "BL – Nov 2015 – L2 – SB – Q6a – Hire Purchase and Consumer Credit Transactions"

BL – May 2014 – L1 – SA – Q9 – Hire Purchase and Consumer Credit Transactions

Understanding the term for possession in hire purchase after payment.

You're reporting an error for "BL – May 2014 – L1 – SA – Q9 – Hire Purchase and Consumer Credit Transactions"

BL – Nov 2013 – L1 – SB – Q3c – Hire Purchase, Consumer Credit Transactions

Explaining two key characteristics of hire purchase transactions.

You're reporting an error for "BL – Nov 2013 – L1 – SB – Q3c – Hire Purchase, Consumer Credit Transactions"

BL – Nov 2013 – L1 – SA – Q9 – Hire Purchase and Consumer Credit Transactions

Identifies the relationship between the owner and the hirer in a hire purchase transaction.

You're reporting an error for "BL – Nov 2013 – L1 – SA – Q9 – Hire Purchase and Consumer Credit Transactions"

BL – Nov 2013 – L1 – SA – Q9 – Hire Purchase and Consumer Credit Transactions

Determines the basis of possession in a hire purchase transaction.

You're reporting an error for "BL – Nov 2013 – L1 – SA – Q9 – Hire Purchase and Consumer Credit Transactions"

BL – Nov 2015 – L1 – SA – Q18 – Hire Purchase and Consumer Credit Transactions

Identifying duties not required of a hirer in a Hire Purchase contract.

You're reporting an error for "BL – Nov 2015 – L1 – SA – Q18 – Hire Purchase and Consumer Credit Transactions"

BL – May 2018 – L1 – SA – Q15 – Hire Purchase and Consumer Credit Transactions

Identify the party with the option to purchase goods in a hire purchase agreement.

You're reporting an error for "BL – May 2018 – L1 – SA – Q15 – Hire Purchase and Consumer Credit Transactions"

BL – Nov 2014 – L1 – SB – Q6b – Hire Purchase and Consumer Credit Transactions

State and explain two pieces of information required in a hire purchase memorandum under the Hire Purchase Act of 1965.

You're reporting an error for "BL – Nov 2014 – L1 – SB – Q6b – Hire Purchase and Consumer Credit Transactions"

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