Explain the legal consequences of non-registration of a hire-purchase agreement

Explain the legal consequences of non-registration of a hire-purchase agreement

ANSWER

Under section 5 (4) of the Hire Purchase Act, if a hire purchase agreement is not registered.

• No person can enforce it against the hirer.
• The owner cannot enforce any rights to recover the goods from the hirer.
• Any contract of guarantee relating to the hire purchase agreement is also unenforceable
• Any security given by the hirer or guarantor under their respective contracts is unenforceable.