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HIRE-PURCHASE REGULATIONS

Total questions: 15

Worksheet time: 11mins

Name
Class
Date
1.

Section (2) defines Hire-Purchase as a ...............................

a)

separate contract for each types of goods

b)

contract of letting goods

c)

with an option to purchase

d)

agreement must in writing

e)

agreement for the purchase of goods by installments

2.

Section 5 (1) states within (a)   days after the HP agreement is completed, the owner shall serve on each hirer and the guarantors a copy of the agreement.

3.

a breach of (a)   is a serious breach and it goes to the root of the contract.

4.

a breach of warranty is a less serious breach and it does not entitle the party not in breach to repudiate the contract but to sue for (a)   only

5.

Under implied warranties of HP Act provide that the hirer shall have and enjoy quiet possession of the goods

a)

TRUE

b)

FALSE

6.

Identify the statutory rights of Hirer.

a)

Right of Assignment

b)

Right to Repossession

c)

Right to Terminate the agreement

d)

To pay arrears

7.

Which is NOT the rights of owner to repossess the goods provided under section 16(1) of HPA 1967

a)

hirer has defaulted 2 successive payments

b)

payment of installments is less than 75% of the total cash price of the goods

c)

owner has served on the hirer notice in writing in the 4th schedule

d)

owner appoint non-permit holder

8.

Section 16(1D) provides if the hirer dies, owner may repossess if there has been (a)   successive defaults of payments.

9.

Which is NOT the obligations of the Hirer?

a)

to pay installment

b)

hirer not to defraud

c)

to prepare guarantors if requested

d)

to be supplied with documents

10.

theowner shall have a right to sell the goods to X when the payments are completed by the Hirer.

a)

TRUE

b)

FALSE

11.

what are goods under HPA 1967

a)
b)
c)
d)
e)
12.

hirer may complete the purchase of the goods by paying the net balance due under the agreement in 2 situations which is........

a)

at any time during the continuance of the agreement

b)

after the owner has repossessed the goods

c)

after the owner has sell the goods to another buyer

d)

after hirer defaulted 4 successive payments

13.

repossession can only be made after (a)   days from the date of serving in 4th schedule notice.

14.

section 11 confers a right on hirer to apply to a Magistrate's Court for an order permitting him to move the goods to some other place

a)

TRUE

b)

FALSE

15.

a hirer who returns the goods within 21 days after the service of notice in 4th schedule shall not be liable to pay...

a)

the cost of repossession

b)

the cost incidental in taking possession

c)

the cost price of the goods

d)

the cost of storage