HOW NOT TO MAKE A HIRE PURCHASE AGREEMENT?

HOW NOT TO MAKE A HIRE PURCHASE AGREEMENT?

You think you can insert a clause into your Hire Purchase Agreement giving you the power to take back your vehicle when the hirer misses a payment? Think again.

Many vehicle owners in Nigeria fall into a dangerous trap, believing they can insert a term into a Hire Purchase Agreement allowing them to repossess the vehicle whenever the hirer defaults on payments.

In Nigerian Hire Purchase law, once a person has paid half or more of the hire purchase price, the owner cannot repossess the vehicle without first obtaining a court order, no matter what your agreement says.

He can only serve written notice of termination and hope that the hire purchaser releases the vehicle. He cannot use force, threats or enter premises unlawfully.

This means any hire purchase agreement clause giving the owner the right to repossess without a court order, after the 50% payment mark, is invalid, unlawful and unenforceable.

If the owner tries to repossess without court approval once the hirer has paid half or more, it is wrongful and the owner loses the right to recover unpaid installments and may be liable to pay damages for unlawful repossession.

Don’t sign a worthless agreement.

To protect your interests as an owner, engage an experienced Property and Business Lawyer to draft a valid and enforceable Agreement, so you don’t lose your vehicle, your money or face unexpected legal issues.
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APEX CHAMBERS, Property & Business/Corporate Lawyers, 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