ZIMSEC O Level Commerce Notes: Hire Purchase Act
- During the Hire Purchase period the goods are insured and owned by the seller.
- Allows the consumer to have a “cooling off” period if the agreement is signed outside the trader’s premises during which period the consumer may cancel the agreement.
- If the buyer defaults in payment, the seller has to obtain a court order in order to repossess the goods if at least one-third of the purchase price has been paid.
- Guards against unfair and unlawful repossession of goods.
- The rate of deposit is fixed by law.
- The following information should be easily obtainable on all goods sold on Hire Purchase to allow the consumer to decide whether they can afford the goods:
- the number and amounts of installments.
- the cash price of the goods.
- the Hire Purchase price of the goods.
- A description of the goods.
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