passwella.
Menu

JAMB Commerce 1999 Question 39

Question 39

Purchase and Sale of Goods

In a hire purchase agreement between Argungu Ltd and Maikudi, Argungu Ltd inserted the provision that it can enter Maikudi's premises at any time and remove the hired vehicle for any breach. This provision is

  1. A.lawful to both
  2. B.unlawful to both
  3. C.beneficial to both
  4. D.detrimental to both.
Show the answer and explanation

Answer: B (unlawful to both)

Explanation

Hire purchase law forbids a clause letting the owner enter the hirer's premises to seize the goods, so such a clause is void.