HOW NOT TO DRAFT A HIRE PURCHASE AGREEMENT

HOW NOT TO DRAFT A HIRE PURCHASE AGREEMENT

Once a hire purchaser has paid up to half of the hire purchase price, the rules change completely.

From that moment, any clause in a Hire Purchase Agreement that allows the owner to repossess the vehicle for any reason without a court order becomes unlawful, invalid and a joke.

It does not matter how cleverly the clause is drafted or that both parties agreed to it and signed.

The law is that repossession after half payment can only be done with a court order. Anything to the contrary is illegal.

An owner who ignores this and forcefully repossesses the vehicle risks losing the vehicle entirely and paying damages to the hire purchaser. Yes, the law can punish the owner. So what was meant to ‘protect’ the owner can backfire badly.

This is why Hire Purchase Agreements should never be treated as casual documents or copied templates. An unlawful repossession clause can turn a profitable transaction into expensive drama.

If you are an owner, do not draft a Hire Purchase Agreement that will destroy your own legal rights. Demonstrate compliance, not ill-advised aggression.

The safest move is to get a knowledgeable Property and Business Lawyer who understands the law, to properly draft or review your Agreements before you sign.

Ignorance of the law is not a defence. Bad drafting is a liability and the law will not excuse avoidable legal mistakes.

__________________
APEX CHAMBERS, Law Firm of Property/Real Estate and Business/Corporate/Commercial Lawyers, Attorneys, Barristers, Solicitors Advocates, Legal Practitioners rendering legal services, Legal Consultants and Notary Public with Law Office in Port Harcourt, Rivers State, Nigeria

Phone: +234(0)7030868694 (Calls & Whatsapp)
Email: info@apexchambersglobal.com
Website: www.apexchambersglobal.com.