CONTRACT LAW ā Hire Purchase ā Repossession ā Payment of 3/5th of Price Bars Repossession Without Court Order
Principle Statement
Where the Hire Purchase Act applies to a transaction and it is admitted that the appellant has paid 3/5th of the purchase price of the rig in issue, the respondent cannot in law repossess the rig otherwise than in accordance with the law.
Ratio Decidendi (Source)
Per Onnoghen, JSC, in Civil Design Construction Nig. Ltd v. SCOA Nigeria Limited (2007) NLC-123-216-2001(SC) at p. 12; Paras EāB.
"I therefore hold that the Hire Purchase Act applies to the transaction between the parties and that as it is admitted that appellant has paid 3/5th of the purchase price of the rig in issue the respondent cannot in law repossess the rig otherwise than in accordance with the law."
Explanation / Scope
Under the Hire Purchase Act, once the hirer has paid 3/5th of the purchase price, the owner cannot repossess the goods without a court order. This protects the hirer’s substantial interest in the goods. Any repossession contrary to this provision is unlawful and may expose the owner to liability. The hirer retains possession and the owner must resort to judicial process to recover the goods.
