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Explain the legal consequences of non-registration of a hire-purchase agreement.

      

Explain the legal consequences of non-registration of a hire-purchase agreement.

  

Answers


Maurice
Under section 5 (4) of the Hire Purchase Act, if a hire purchase agreement is not registered:
(i) No person can enforce it against the hirer.

(ii) The owner cannot enforce any rights to recover the goods from the hirer.

(iii) Any contract of guarantee relating to the hire purchase agreement is also unenforceable.

(iv) Any security given by the hirer or guarantor under their respective contracts is
unenforceable.
maurice.mutuku answered the question on April 27, 2018 at 12:31


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