Month: September 2020

Nura Kara entered into a hire purchase contract with Ujuzi traders regarding sewing machine .The hire purchase price of the sewing machine was Sh.10, 000.Kara has paid a total of Sh.8000 but is facing financial difficulties and is in arrears for two months. The hire purchase company has repossessed the machine Nuru Kara is aggrieved. Explain the legal principle applicable in this case and advice Nuru Kara.

Legal principle applicable in this case and advice to Nuru Kara. Where the hirer has paid more than 2/3 of the hire purchase price, the owner cannot repossess the goods without government order. Nuru Kara has paid 8/10 and therefore Read More …

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The hire purchase act implies some terms in every hire purchase agreement. One of these terms is merchantability. This is a condition that the goods are of merchantable quality unless they are second hand. There are however some instances when this condition may be dispensed with. Outline two of the instances when merchantability may be dispensed with.

Instances when merchantability may be dispensed with i) Where the defect complained of is one which the owner could not reasonably have been aware of at the time of the agreement. ii) Where the hirer examined the goods or a Read More …

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Ben Moses purchased a motor vehicle from Arizona Motors Ltd. under a hire purchase agreement at a cost of Sh.600,000 payable in twelve installments. After paying six installments, he gave the car to his wife Isaby Ogeto as a gift. The following month, their relationship became strained and Ben Moses moved out of the matrimonial home taking the car with him. Isaby Ogeto feels aggrieved and has come to you with mandatory instructions to file a case against Ben Moses for recovery of the car. Identify the legal principles applicable in the above case and advise Isaby Ogeto.

Legal principles that are applicable Property in a hire purchase contract does not pass until the hirer has paid the final instalment, and Exercise the option to purchase the goods. Therefore under the doctrine of nemo dat, Ben Moses has Read More …

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Where goods have been let under a hire-purchase agreement and two-thirds of the hire purchase price has been paid the owner shall not enforce any right to recover possession of the goods from the hirer otherwise than by suit. Explain three consequences of contravention of the above provision by the owner.

Consequences of contravening the two-thirds rule:- The hire-purchase agreement if not previously terminated shall terminate. The hirer shall be released from all liability under the agreement and shall be entitled to recover from the owner by suit all sums paid. Read More …

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