Legal consequences of non-registration of a hire-purchase agreement

Under section 5 (4) of the Hire Purchase Act, if a hire purchase agreement is not registered.

  • No person can enforce it against the hirer.
  • The owner cannot enforce any rights to recover the goods from the hirer.
  • Any contract of guarantee relating to the hire purchase agreement is also unenforceable
  • Any security given by the hirer or guarantor under their respective contracts is unenforceable.

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