Commercial Law 300l-2S

NAME: SOLOMON EZERA UKPAI
MATRIC NUMBER: 20080100037
LEVEL: 300L
COLLEGE: COLLEGE OF LAW
DEPARTMENT: LAW
COURSE: COMMERCIAL LAW
COURSE CODE: LAW 344
LECTURER: BARR. CHUKWUMA

QUESTION
I. Briefly discuss the concept of redelivery and repossession of the res
(subject matter) both under the common law and the Hire Purchase Act.
II. Briefly highlight the areas where the Hire Purchase Act made some
refinements on the common law concept of hire purchase.
ANSWER I
Under common law and the Hire Purchase Act of Nigeria, redelivery and
repossession pertain to the processes associated with the return of goods in a
hire purchase agreement. Let's explore these concepts in more detail:
Redelivery:
Redelivery refers to the act of returning the goods to the owner or the hire
purchase company at the end of the hire purchase agreement. When a hire
purchase agreement comes to an end, the hirer (the person who has been using
the goods) is required to return the goods to the owner or the hire purchase
company.
Under common law, the hirer has an obligation to redeliver the goods in a
condition similar to what was agreed upon in the hire purchase agreement. This
means that the goods should be returned in good condition, taking into account
any reasonable wear and tear that may have occurred during the hire period.
In the context of the Hire Purchase Act of Nigeria, SECTION 10 of the Act
specifically addresses redelivery. It states that at the end of the hire purchase
agreement, the hirer is obligated to deliver the goods back to the owner in the
condition specified in the agreement. If the hirer fails to redeliver the goods as
required, they may be liable for penalties or legal action.
Repossession:
Repossession, on the other hand, refers to the action taken by the owner or the
hire purchase company to regain possession of the goods in the event of default
or breach of the hire purchase agreement by the hirer. When the hirer fails to
fulfill their payment obligations or violates the terms of the agreement, the
owner or the hire purchase company has the right to repossess the goods. Under
common law, the owner can repossess the goods if the hirer has defaulted on
the payments or breached the agreement, provided that the owner follows the
legal procedures and acts in a reasonable manner. See NEWCITY PRESS V.
BRISCOSE.
The Hire Purchase Act of Nigeria also outlines the provisions for repossession in
SECTION 9. It allows the owner or the hire purchase company to retake
possession of the goods if the hirer is in default of payment, subject to certain
conditions and procedures. The Act specifies that repossession should not be
conducted in a manner likely to breach the peace and that the hirer must be
given reasonable notice of the intention to repossess the goods.
ANSWER II
The Hire Purchase Act of Nigeria introduced significant refinements and statutory
provisions that modified the common law concept of hire purchase. The Act
aimed to provide a more structured legal framework to regulate hire purchase
transactions and protect the interests of both hirers and owners. Here are some
areas where the Hire Purchase Act made refinements on the common law
concept of hire purchase:
Termination and Repossession Thresholds:

Under common law, the owner could repossess the goods if the hirer defaulted
on payments or breached the agreement. The Act, however, introduced specific
thresholds in SECTIONS 9 AND 11 to protect the hirer from immediate
repossession and termination. Once the hirer has paid one-third of the total hire
purchase price, the owner cannot repossess the goods without the court's
permission. Once the hirer has paid one-half of the total hire purchase price, the
owner cannot terminate the agreement or repossess the goods unless ordered
by the court. These thresholds aim to provide the hirer with greater protection
against repossession and termination before they have substantially paid off the
agreement.
Hirer's Right to Redelivery:

The Act introduced provisions in SECTION 10 that explicitly state that the hirer
cannot be compelled to redeliver the goods unless they have received a proper
statement of the cash price and rental price of the goods, as well as a copy of
the hire purchase agreement. This provision ensures that the hirer is fully
informed about the terms of the hire purchase agreement before being obligated
to redeliver the goods.
Restrictions on Repossession:
The Act included SECTION 9, which states that repossession should not be
carried out in a manner likely to breach the peace. This provision aims to prevent
aggressive or unlawful repossession practices that could lead to violence or
disturbances.
Consumer Protection:
The Hire Purchase Act introduced provisions for the protection of consumers in
hire purchase transactions. SECTIONS 12 TO 19 outline specific requirements
related to hire purchase agreements, including the necessity for written
agreements, content of agreements, and mandatory disclosure of key terms and
information. These provisions aim to ensure that consumers are adequately
informed and protected in hire purchase transactions.
Control of Charges and Interest Rates:

The Act empowered the Minister of Trade and Commerce to control charges and
interest rates in hire purchase transactions. This provision, under SECTION 22,
allows for the regulation of excessive charges and interest rates, protecting
consumers from unfair practices.
Dispute Resolution Mechanisms:

The Act established procedures for dispute resolution between hirers and
owners. SECTIONS 27 AND 28 allow either party to refer disputes to a
magistrate's court or arbitration, providing a legal avenue for resolving conflicts
that may arise during the hire purchase agreement.

Commercial Law 300l-2S

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NAME: SOLOMON EZERA UKPAI

MATRIC NUMBER: 20080100037

COLLEGE: COLLEGE OF LAW

COURSE: COMMERCIAL LAW

COURSE CODE: LAW 344

LECTURER: BARR. CHUKWUMA

Termination and Repossession Thresholds:

Hirer's Right to Redelivery:

Control of Charges and Interest Rates:

Dispute Resolution Mechanisms:

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