Hire Purchase/Instalment Payment/ Deferred Payment SS3 Commerce Lesson Note

HIRE PURCHASE ACT 1975

This Act spells out the rights and duties of the hire purchaser (buyer) and the hire vendor (seller) and also protects the buyer from cheating and exploitation.

 PROVISION OF THE HIRE PURCHASE ACT (1975)

1. In hire purchase transactions the cash sale price must be shown along with the hire purchase price to enable the buyer to know the difference.
2. If the buyer defaults after paying 1/3 of the hire purchase price the seller cannot repossess the article except through a court order
3. The buyer has the right to stop paying the instalments and return the article if he has paid ½ of the hire purchase price.
4. Where the buyer is compelled or made to sign the Hire Purchase agreement at his home, he has the right to cancel it within three days of the contract.

 EVALUATION QUESTIONS

1. State two duties of buyers in the sale of goods.
2. State two provision of the Hire Purchase Act (1975)
3. State six differences between Hire Purchase and Deferred Payment

 GENERAL EVALUATION QUESTIONS

1. Explain five factors affecting the choice of transportation of frozen products.
2. State five disadvantages of air transport
3. State seven features of a public corporation
4. List and explain six new trends in retailing
5. State five features of a mail-order business

READING ASSIGNMENT

Essential Commerce for SS by A. O. Longe Page 288 – 290

WEEKEND ASSIGNMENT

1. A contract of sale where ownership passes to the buyer on the payment of the first instalment is known as (a) hire purchase (b) lease (c) cash on delivery (d) credit sale.
2. Which of the following goods is not covered by the Sale of Goods Act (a) generator (b) sugar (c) land (d) motor vehicle
3. A contract for the sale of goods involves the (a) exchange of goods (b) producer, the seller and the buyer of goods (c) offering of goods to customers (d) transfer of title to goods for money.
4. An agreement to sell is distinguishable from a sale because, in the former, the transfer of goods is (a) not anticipated (b) not discussed (c) deferred (d) immediate.
5. Adigun displays goods of different makes on shelves in his supermarket. This is an example of (a) an invitation to treat (b) an offer to sell (c) an offer to purchase (d) an invitation to sell

THEORY

1. State two provisions of the Sale of Goods Act 1893
2. State four features of Hire Purchase