Hire Purchase Agreement Nigeria

In each rental agreement, there is a clause stating that in case of termination of the contract, the tenant must pay fifty percent or half of the agreed price. This is called the «minimum payment clause». The purpose of the clause is to ensure that the owner does not suffer the loss. The tenant is only required to pay this amount if he has paid less than half of the total price. Conversely, if he has paid half or more of the total price, he is not expected to bear an additional financial burden. See section 8 of the Act. The landlord does not have the power to increase a tenant`s liability to an amount greater than the amount set out in section 8 (1). one. It is a form of surety, not the surety itself. The difference lies in the fact that, unlike the deposit, a tenant has the opportunity to buy the goods at the end of the rental, which gives him ownership. A violation of the provisions of the law on the recovery of rental property has consequences.

If a landlord breaks the law, here`s what happens: c. The tenant is obliged to maintain the goods with appropriate care, as he is not yet the owner. b. The tenant must also pay the various amounts agreed in accordance with the contract. It is also a fundamental obligation, but one that can be waived in certain circumstances. See Offodile and Sons Enterprise v. S.C.O.A (1969) CCHCJ 1333. The above conditions and warranties are implied, notwithstanding different agreements. See section 4 of the Act in general. Under customary law, the removal of goods that are the subject of a tempe purchase contract may be carried out by the tenant with or without legal action.

The slightest delay by the tenant entitled the owner of the meeting. See Atero v. Amao (1957) WRNLR 176. However, the Hire Purchase Act changed this position. By law, the removal of the goods must be carried out by an appeal to the courts in compliance with certain conditions, in particular when the tenant has paid a relevant part of the agreed overall price. See sections 9 and 10. it should be noted that the provision does not apply in the following cases: if the tenant voluntarily accepts the withdrawal of the goods by the owner; and if the tenant exercises his right to terminate the contract. 2. The owner handed over this vehicle to the renter and authorized the renter to use the vehicle in the usual manner. The importance of time purchase has been defined by the Tempe Purchase Act. According to the provision on page 20 (1) of the Act, a lease is a lease: the tempering right to purchase is new in English law.

The earliest law was enacted in 1938.

Sobre el Autor: Luis