Hire purchase is quickly becoming a popular payment for Kenyans. There are companies such as Kenya Credit Traders that sell their products on hire purchase terms. This enables potential buyers to acquire assets at a fraction of the total cost. Afterward, one pays the balance plus the interest in monthly installments, allowing them to fully own the items or assets. Check our website to find many items available on hire purchase.
When one purchases goods on hire purchase, they will need to sign a hire purchase agreement. This is a legally binding agreement, and this means that you can be sued when you breach it. It is thus vital to take time and go through the agreement before signing. It is advisable that one doesn’t skimp when it comes to these agreements. Here are some key elements of the hire purchase agreements
Duties of the owner (Seller)
- Notification of the total price: The owner has to notify the buyer of the total cost of the items. This will include the premium or the down payment, the installments, and the interest.
- Disclosure of defects: It is also the duty of the seller to disclose to the buyer any defects on the products they intend to purchase.
- Delivery of goods: The owner will also need to deliver products to the buyer. Kenya credit traders ship all the products to a branch near you after you place an order and sign the agreement.
- Compensation: The seller also has an obligation to compensate for any damages or defects on the products they are delivering.
- Register the hire purchase contract.
Rights of the owner
- Recovery of installments in arrears: The seller remains the rightful owner of the product until the buyer has paid the last installment.
- Sue in damages for breach: The seller has every right to sue the buyer if they breach the hire purchase agreement. This includes damages to the products by the buyer.
- Retention of the sum paid: After you make the down payment, the seller has the right to retain the sum as well as the installments. Even when the goods are repossessed due to a breach, they will retain the sum.
- Right to be notified about the change in location of the goods.
- Right to repossess the products: When the hirer breaches the agreement, and when the circumstances justify it, the owner can repossess the goods.
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