HIRE PURCHASE AGREEMENT MUST BE IN WRITING

HIRE PURCHASE AGREEMENT MUST BE IN WRITING

A hire purchase may sound simple: collect the vehicle/goods today and pay by instalments, but under Nigerian law, if you do not put a hire purchase Agreement in writing, you are begging for trouble.

The law in Nigeria is that, to be valid and enforceable, a Hire Purchase Agreement must be in writing. A verbal understanding or long-standing relationship offers no legal safety when trouble starts.

To be legally recognized, a Hire Purchase Agreement must be written and signed. It must clearly contain important terms, including:
The price of the vehicle/goods;
The hire purchase price;
The initial deposit paid, if any;
The instalment figure and due dates;
The hirer and owner’s rights to terminate the agreement;
The cooling-off period, and
That ownership remains with the owner until full payment.

Once these mandatory terms are missing, the agreement becomes legally fragile. In many cases, the owner may lose the right to repossess the goods, recover instalments or enforce the Agreement at all.

What looked like a solid transaction becomes a big mistake. So a hire purchase is not a do-it-yourself transaction. A well drafted agreement is needed for legal protection.

Engaging a competent Business and Property Lawyer ensures the agreement complies fully with the Hire Purchase Law and shields both parties from avoidable issues.

Do not be penny wise pound foolish.

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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.