Introduction to Law – CPA – Hire Purchase Law

HIRE PURCHASE LAW

Scope of the Act

Section 3 (
“This Act applies to and in respect of all hire purchase agreements entered into after the
commencement of this Act under which the hire purchase price does not exceed the sum of four
million shillings or such other higher or lower sum as the Minister may, after taking into account
market forces from time to time prevailing, prescribe"..Other than a hire purchase agreement in which
the hirer is a body corporate, wherever incorporated………”

However, this Act shall not apply to any scheme controlled, managed or guaranteed by the
Government for the purpose of providing loans to any persons for the purchase of motor vehicles.
Definitions:
Hire Purchase Price:

Contract of Guarantee:

Owner:

Hirer:

HIRE PURCHASE AGREEMENT

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Introduction to Law – CPA – Hire Purchase Law

CREDIT SALE

CONDITIONAL SALE

PROVISIONS RELATING TO THE HIRE PURCHASE AGREEMENT

CONTENTS OF THE AGREEMENT

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REGISTRATION OF THE HIRE PURCHASE AGREEMENT

prima facie

EFFECTS OF NON REGISTRATION

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Introduction to Law – CPA – Hire Purchase Law

PROTECTION OF THE HIRER

1. Contents of the Hire Purchase Agreement

2. Implied Terms

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Introduction to Law – CPA – Hire Purchase Law

CONDITIONS
Right to sell:

Merchantable Quality:

Fitness for Purpose:

WARRANTIES
Quite Possession

Free from charge or encumbrance

3. Repossession of Goods

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OBLIGATIONS OF THE HIRE PURCHASE AGREEMENT

DUTIES OF THE OWNER

Notice of cash Price:

Furnish Copy:

Deliver the goods:

Indemnity:

DUTIES OF THE HIRER

Reasonable care:

Take Delivery

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Introduction to Law – CPA – Hire Purchase Law

Pay Installments:

Continue Hiring:

Notice of location of goods

TERMINATION OF THE HIRE PURCHASE AGREEMENT

COMPLETION OF HIRE PURCHASE AGREEMENT

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Introduction to Law – CPA – Hire Purchase Law

RIGHTS OF THE HIRER

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