ADVOKS GLOBAL · KENYA
Hire-Purchase Act
6. Requirements relating to agreements
Edition: 2022-12-31 · In force
6. Requirements relating to agreements
(1)Before a hire-purchase agreement is entered into in respect of any goods, the owner shall state in writing in the prescribed form to the prospective hirer, otherwise than in the agreement, a price at which the goods may be purchased by him for cash (in this section referred to as the cash price):Provided that this subsection shall be taken to have been sufficiently complied with—(i)if the hirer has inspected the goods or like goods, and at the time of his inspection tickets or labels were attached to or displayed with the goods clearly stating the cash price, either of the goods as a whole or of all the different articles or sets of articles comprised therein; or(ii)if the hirer has selected the goods by reference to a catalogue, price list or advertisement which clearly stated the cash price, either of the goods as a whole or of all the different articles or sets of articles comprised therein.(2)An owner shall not be entitled to enforce a hire-purchase agreement or any contract of guarantee relating to it or any right to recover the goods from the hirer, and no security given by the hirer in respect of money payable under the hire-purchase agreement or given by a guarantor in respect of money payable under a contract of guarantee relating to the hire-purchase agreement shall be enforceable against the hirer or guarantor by any holder thereof, unless the requirement specified in subsection (1) has been complied with, and—(a)the agreement is made and signed by the hirer and by or on behalf of all other parties to the agreement; and(b)the agreement contains a statement of—(i)the hire-purchase price and the cash price of the goods to which the agreement relates; and(ii)the amount of each of the instalments by which the hire- purchase price is to be paid and the date (or the mode of determining the date) upon which each instalment is payable; and(iii)a description of the goods sufficient to identify them; and(c)the agreement contains a notice in the prescribed form relating to the rights of the hirer which is at least as prominent as the rest of the contents of the agreement; and(d)a copy of the agreement has been delivered or sent by registered post by the owner to the hirer within twenty-one days of the date of the agreement.(3)If the Court is satisfied in any suit that a failure to comply with the requirement specified in subsection (1), or any of the requirements specified in paragraphs (b), (c) and (d) of subsection (2) of this section, has not prejudiced the hirer, and that it would be just to dispense with the requirement, the Court may, subject to any conditions that it thinks fit to impose, dispense with that requirement for the purposes of the suit.