Hire Purchase and Consumer Credit Transactions – Page 3

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

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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 – Nov 2014 – L1 – SB – Q5b – Hire Purchase and Consumer Credit Transactions

Explain three general obligations of the hirer in a hire purchase agreement at common law.

Question

Hire Purchase, in ordinary parlance, means an agreement entered into to hire some goods and subsequently pay by instalments.
You are required to explain any THREE of the general obligations of the hirer at Common Law.
(Total 6 Marks)

Answer

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Tags: Common Law, Hire Purchase, Obligations
Level: Level 1

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

BL – Nov 2014 – L1 – SA – Q19 – Hire Purchase and Consumer Credit Transactions

Identify the incorrect duty of a bank to its customers.

Question

ONE of the duties of a bank to its customers is the duty of/not
A. Employment
B. Pay on their behalf without mandate
C. To assist them
D. Secrecy
E. To give scholarship to their children

Answer

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Tags: Banking, Confidentiality, Customer Relations, Legal Duties
Level: Level 1

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

BL – Nov 2014 – L1 – SA – Q17 – Hire Purchase and Consumer Credit Transactions

Identify the incorrect characteristic of a Hire Purchase contract.

Question

Generally, a Hire Purchase contract has the following characteristics EXCEPT
A. Bailee and Bailor
B. Written agreement
C. Deposit of a specified sum of money
D. Possession of goods by the hirer
E. The agreement that cannot be terminated

Answer

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Tags: Bailment, Consumer Credit, Contracts, Hire Purchase
Level: Level 1

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

BL – Nov 2021 – L1 – SB – Q5b – Hire Purchase and Consumer Credit Transactions

hire purchase default

Question

Chukwudi defaulted in the sum of ₦150 out of ₦500,000 in the payment of his installments under a hire purchase agreement. The owner repossessed the goods.

Required:
i. Explain briefly the duty of a hirer relating to the payment of hire purchase installments (2 Marks).
ii. Advise Chukwudi, who is thinking of challenging in court the repossession of the goods by the owner on the grounds that it is unfair since he had almost completed payment of the cash price (3 Marks).

Answer

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Tags: Hire Purchase
Level: Level 1

Topic: Hire Purchase and Consumer Credit Transactions
Series: NOV 2021

BL – May 2022 – L1 – SB – Q3c – Hire Purchase and Consumer Credit Transactions

State two rights of a hirer under a hire purchase contract.

Question

Bola has hired a car under a contract of hire purchase from CAB Car Rentals and wants to know if he has any rights under the contract.

Required:
State TWO rights of Bola under the contract.

Answer

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Tags: Contract, Hire Purchase, Hirer's Rights
Level: Level 1

Topic: Hire Purchase and Consumer Credit Transactions
Series: MAY 2022

BL – Nov 2021 – L1 – SA – Q15 – Hire Purchase and Consumer Credit Transactions

Identifying the liability of the owner for breaching a hire purchase warranty.

Question

An owner that is in breach of a warranty under a hire purchase agreement is liable to
A. Pay damages to the hirer
B. Forfeit every right under the agreement
C. Lose his right to further installment payments
D. Refund all installments already paid by the hirer
E. Repudiate the agreement

Answer

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Tags: Hire Purchase, Warranty
Level: Level 1

Topic: Hire Purchase and Consumer Credit Transactions
Series: NOV 2021

BL – Nov 2022 – L1 – SB – Q6b – Hire Purchase Law

Identifying ways a hire purchase contract may be terminated.

Question

A hire purchase contract may be terminated in different ways.

Required:
State four ways by which hire purchase contract may be terminated.

Answer

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Tags: Contract Termination, Hire Purchase
Level: Level 1

Topic: Hire Purchase and Consumer Credit Transactions
Series: NOV 2022

BL – Nov 2022 – L1 – SA – Q15 – Hire Purchase and Consumer Credit Transactions

Identifying the relationship between the parties in a hire purchase contract.

Question

Under hire purchase contract, the relationship between the parties is that of:

A. Mortgagor and mortgagee
B. Assignor and assignee
C. Bailor and bailee
D. Consignor and consignee
E. Vendor and vendee

Answer

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Tags: Contractual Relationship, Hire Purchase
Level: Level 1

Topic: Hire Purchase and Consumer Credit Transactions
Series: NOV 2022

BL – May 2022 – L1 – SA – Q15 – Hire Purchase and Consumer Credit Transactions

Identify the type of contract where one has possession while paying in installments.

Question

A contract by which one person has possession of a product while paying for it in installments is known as
A. Bailment
B. Factoring
C. Leasing
D. Hire purchase
E. Sale in installments

Answer

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

Topic: Hire Purchase and Consumer Credit Transactions
Series: MAY 2022

BL – May 2021 – L1 – SA – Q13 – Hire Purchase and Consumer Credit Transactions

Identifying what hire purchase contracts do not involve.

Question

A hire purchase contract does not involve transfer of

A. Possession
B. Title
C. Indemnity
D. Proposal
E. Inventory

Answer

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Tags: Consumer Credit, Contractual Agreements, Hire Purchase
Level: Level 1

Topic: Hire Purchase and Consumer Credit Transactions
Series: MAY 2021

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.

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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.

You're reporting an error for "BL – Nov 2012 – L1 – SA – Q12 – Hire Purchase"

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 – Nov 2014 – L1 – SB – Q5b – Hire Purchase and Consumer Credit Transactions

Explain three general obligations of the hirer in a hire purchase agreement at common law.

You're reporting an error for "BL – Nov 2014 – L1 – SB – Q5b – Hire Purchase and Consumer Credit Transactions"

BL – Nov 2014 – L1 – SA – Q19 – Hire Purchase and Consumer Credit Transactions

Identify the incorrect duty of a bank to its customers.

You're reporting an error for "BL – Nov 2014 – L1 – SA – Q19 – Hire Purchase and Consumer Credit Transactions"

BL – Nov 2014 – L1 – SA – Q17 – Hire Purchase and Consumer Credit Transactions

Identify the incorrect characteristic of a Hire Purchase contract.

You're reporting an error for "BL – Nov 2014 – L1 – SA – Q17 – Hire Purchase and Consumer Credit Transactions"

BL – Nov 2021 – L1 – SB – Q5b – Hire Purchase and Consumer Credit Transactions

hire purchase default

You're reporting an error for "BL – Nov 2021 – L1 – SB – Q5b – Hire Purchase and Consumer Credit Transactions"

BL – May 2022 – L1 – SB – Q3c – Hire Purchase and Consumer Credit Transactions

State two rights of a hirer under a hire purchase contract.

You're reporting an error for "BL – May 2022 – L1 – SB – Q3c – Hire Purchase and Consumer Credit Transactions"

BL – Nov 2021 – L1 – SA – Q15 – Hire Purchase and Consumer Credit Transactions

Identifying the liability of the owner for breaching a hire purchase warranty.

You're reporting an error for "BL – Nov 2021 – L1 – SA – Q15 – Hire Purchase and Consumer Credit Transactions"

BL – Nov 2022 – L1 – SB – Q6b – Hire Purchase Law

Identifying ways a hire purchase contract may be terminated.

You're reporting an error for "BL – Nov 2022 – L1 – SB – Q6b – Hire Purchase Law"

BL – Nov 2022 – L1 – SA – Q15 – Hire Purchase and Consumer Credit Transactions

Identifying the relationship between the parties in a hire purchase contract.

You're reporting an error for "BL – Nov 2022 – L1 – SA – Q15 – Hire Purchase and Consumer Credit Transactions"

BL – May 2022 – L1 – SA – Q15 – Hire Purchase and Consumer Credit Transactions

Identify the type of contract where one has possession while paying in installments.

You're reporting an error for "BL – May 2022 – L1 – SA – Q15 – Hire Purchase and Consumer Credit Transactions"

BL – May 2021 – L1 – SA – Q13 – Hire Purchase and Consumer Credit Transactions

Identifying what hire purchase contracts do not involve.

You're reporting an error for "BL – May 2021 – L1 – SA – Q13 – Hire Purchase and Consumer Credit Transactions"

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