JAMB Commerce 1999 Question 17

Question 17

Purchase and Sale of Goods

Kamaldeen is a seller in a hire-purchase agreement with Emeka. By law, Kamaldeen cannot recover the hire purchased goods. This is an instance of a restriction on

  1. A.Emeka's right to terminate the agreement
  2. B.Kamaldeen's right to re-hire the goods
  3. C.Emeka's right to breach the agreement
  4. D.Kamaldeen's right to terminate the agreement.
Show the answer and explanation

Answer: B (Kamaldeen's right to re-hire the goods)

Explanation

The Hire Purchase Act limits the seller's right to take back (and re-hire) the goods once a set part of the price has been paid.