Duties of the Owner

  1. Duty to notify the hirer of the cash price
  2. The owner must send a copy of the Hire Purchase Agreement, to the Hirer within 21 days of execution
  3. Duty to put the Hirer in possession of the goods let under a Hire
  4. Duty to compensate the hirer in the event of defective goods
  5. The owner is bound to disclose to the hirer any defects in the goods or in his title

Duties of the Hirer

  1. Reasonable care- It is the duty of the hirer to exercise reasonable care in relation to the goods let under a hire purchase agreement. However the hirer is not liable for ordinary wear and
  2. Take Delivery-The hirer is bound to take delivery of the goods under hire purchase agreement.

Pay Installments

  1. Continue Hiring-It is the duty of the hirer to continue hiring the goods for the agreed duration. This obligation does not deny the hirer the right to terminate the agreement.
  2. Notice of change of location of goods-It’s the duty of the hirer to inform the owner any change in the location of the

Rights of the hirer

  1. He is entitled to be notified of the cash price of the
  2. He is entitled to a copy of the Hire Purchase Agreement within 21 days of the execution of the
  3. He is entitled to Indemnity for any loss or liability arising by reason of any defect in the goods or of
  4. He is entitled to quiet possession of the goods let under the Hire Purchase Agreement
  5. He is entitled to damages for any breach of contract by the owner
  6. He has the right to terminate the Hire Purchase Agreement at any time before the final instalment falls


The hirer before the final installment may terminate the agreement by;

  1. Giving a written notice of termination
  2. Returning the goods

Once this is done the depreciation clause or the minimum payment comes into play in which case the hirer has to pay;

  1. All installments due up to the termination day
  2. The amount by which one half of the hire purchase price exceeds the total amount paid or such lesser amounts as the agreement may


If the hirer has not taken reasonable care of the goods, he is reliable in damages, the hirer must at his own expense return the goods to the premises from which delivery was taken.

However if the goods are returned elsewhere by reason of the owners change of location, any additional expenses are recoverable from the owner.

Topic eight dispute resolution


Definition:  refers to the process through which differing parties come up with a solution that is agreeable to both parties it may involve compromises by both parties.

negotiations can also be defined as the process through which one is able to get what he/she wants.

Importance of negotiations

  1. coexistence through negotiation people accommodate each other desires and beliefs. they are also able to resolve their differences in a friendly way thus live in peace.
  2. conflict resolution- negotiations allows people to resolve their conflicts in a peaceful way without loss of live or damage to property. when there is conflict people engage in discussions and reach a peaceful compromise.
  3. enhances interpersonal relations. in our relationship with other people we often have differences concerning issues through negotiations. we come up with agreements or solutions that leave each party feeling satisfied.
  4. formation and maintenance of friendship. people who may not haver been friends may engage in negotiation to resolve some differences between them during these processes or after the individuals may discover they have some things in common and a friendship may develop.
  5. empathy enhanced- during negotiations the parties are given a chance to explain themselves this gives each party an opportunity to see the situation from the other point of view in therefore enables them to emphatize with each other.

Adjudication – This is a legal way of solving disputes, a judge listens to the views of both sides and makes a judgment that brings an end to the conflict the parties involved do not have much choice over who listens to the case. The judge has the authority to state the cause of action to be taken by the parties involved in the conflict.

Arbitration – The parties in conflict agree on a third party who listen to each side and then makes a decision. Both parties must agree on the third party before the conflict resolutions proceed. They must agree to participate in the process and abide by the verdict.

Mediation – It is a process in which the parties in conflict involve a third person whom they both consider to be impartial to help them reach an agreement. The mediation only facilitates discussions between the two parties.

Negotiation – It is the process through which the parties in conflict hold discussions in order to come to an agreement it involves marking offers and comprises by both parties until a common agreement is reached.

Resolution – In this method of conflict resolution discussion are held to establish the  cause of conflicts the parties concern then agree on a specific cause of action which is called RESOLUTION.

Reconciliation – This method (reconciliation) of conflict resolution places emphasis on abolishing or reestablishing good relation between those who are in conflict. This is done by encouraging conversation by violators and forgiveness by victims. It is the basis for the formation of tne and reconciliation commissions.

Transformation – Conflict transformation involves changing various aspects of society in order to solve conflicts and to prevent such conflicts from reoccurring. It involves going to the roots of the conflict and carrying out radical changes transforming relationships that led to the occurrence of the conflict of the first place.

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