The Hire Purchase Act of Nigeria introduced several refinements and

specific statutory provisions that modified and supplemented the common

law concept of hire purchase. These refinements aim to provide a more
structured framework for hire purchase transactions and protect the rights
of both hirers and owners. Here are some areas where the Hire Purchase
Act made refinements on the common law concept of hire purchase:

Disclosure Requirements:
The Act introduced specific provisions to ensure that hirers receive
essential information about the hire purchase agreement. Section 3 of the
Act mandates that the owner must provide the hirer with a written
statement containing the cash price of the goods and the rental price
payable under the agreement.

Formalities of the Agreement:

The Act establishes formalities for hire purchase agreements. Section 4
states that hire purchase agreements must be in writing and signed by
both the owner and the hirer. This requirement provides clarity and
evidence of the agreement's terms and conditions.

Termination Rights:
The Act grants additional rights to hirers regarding termination of the hire
purchase agreement. Section 12 stipulates that hirers can terminate the
agreement at any time before taking possession of the goods, and they are
entitled to a refund of any money paid under the agreement, excluding any
charges specified in the Act.

Repossession Procedures:
The Act provides specific statutory provisions related to repossession
procedures. Section 9 regulates the repossession process, requiring the
owner to provide reasonable notice to the hirer before taking possession of
the goods. It also prohibits repossession in a manner likely to breach the
peace.

Court Permission for Repossession:

The Act introduces safeguards for hirers against arbitrary repossession.
Section 9(2) states that once the hirer has paid one-third of the total hire
purchase price, the owner cannot repossess the goods without obtaining
permission from the court.

Court Permission for Termination:

Section 11 of the Act requires court permission for termination of the hire
purchase agreement once the hirer has paid one-half of the total hire
purchase price. This provision aims to protect hirers from unjust
termination of the agreement by the owner.

Penalties for Unlawful Repossession:

The Act imposes penalties on owners who unlawfully repossess goods.
Section 13 provides for compensation to be paid to the hirer if the owner
repossesses the goods unlawfully, beyond the rights granted by the Act.

These refinements in the Hire Purchase Act of Nigeria help regulate and
govern hire purchase transactions, address gaps in common law, and
ensure fair treatment of both hirers and owners. By providing specific
statutory provisions, the Act brings clarity, consistency, and legal
protections to the hire purchase process in Nigeria.