Section 6 of Hire Purchase Act CAP 507: Requirements relating to agreements

(1) Before a hire-purchase agreement is entered into in respect of any goods, the owner shall state in writing in the prescribed form to the prospective hirer, otherwise than in the agreement, a price at which the goods may be purchased by him for cash (in this section referred to as the cash price):
Provided that this subsection shall be taken to have been sufficiently complied with -
(i) if the hirer has inspected the goods or like goods, and at the time of his inspection tickets or labels were attached to or displayed with the goods clearly stating the cash price, either of the goods as a whole or of all the different articles or sets of articles comprised therein; or
(ii) if the hirer has selected the goods by reference to a catalogue, price list or advertisement which clearly stated the cash price, either of the goods as a whole or of all the different articles or sets of articles comprised therein.
(2) An owner shall not be entitled to enforce a hire-purchase agreement or any contract of guarantee relating to it or any right to recover the goods from the hirer, and no security given by the hirer in respect of money payable under the hire-purchase agreement or given by a guarantor in respect of money payable under a contract of guarantee relating to the hire-purchase agreement shall be enforceable against the hirer or guarantor by any holder thereof, unless the requirement specified in subsection (1) has been complied with, and -
(a) the agreement is made and signed by the hirer and by or on behalf of all other parties to the agreement; and
(b) the agreement contains a statement of -
(i) the hire-purchase price and the cash price of the goods to which the agreement relates; and
(ii) the amount of each of the instalments by which the hire-purchase price is to be paid and the date (or the mode of determining the date) upon which each instalment is payable; and
(iii) a description of the goods sufficient to identify them; and
(c) the agreement contains a notice in the prescribed form relating to the rights of the hirer which is at least as prominent as the rest of the
contents of the agreement; and
(d) a copy of the agreement has been delivered or sent by registered post by the owner to the hirer within twenty-one days of the date of the agreement.
(3) If the Court is satisfied in any suit that a failure to comply with the requirement specified in subsection (1), or any of the requirements specified in paragraphs
(b), (c) and (d) of subsection (2) of this section, has not prejudiced the hirer, and that it would be just to dispense with the requirement, the Court may, subject to any conditions that it thinks fit to impose, dispense with that requirement for the purposes of the suit.

More Sections

Section 7 - Avoidance of certain provisions in agreements

Any provisions in hire-purchase agreement whereby— (a) an owner or any person acting on his behalf is authorized to enter upon any premises for the purpose of taking possession of goods which have...

Section 8 - Conditions and warranties implied in agreements

(1) In every hire-purchase agreement there shall be implied- (a) a condition that the owner will have a right to sell the goods at the time when the property is to pass; (b) a warranty that the...

Section 9 - Change of address and removal of goods from premises

(1) The owner of goods under a hire-purchase agreement may stipulate in the agreement - (a) that the hirer shall record his postal, residential and business addresses in the agreement; and (b) that,...

Section 10 - Removal of goods from Kenya

(1) The owner of goods under a hire-purchase agreement may stipulate in the agreement that the hirer shall not remove or permit the removal of the goods from Kenya without the written consent of the...

Section 11 - Court may allow goods to be removed

Where the terms of a hire-purchase agreement require the hirer to keep the goods comprised in the agreement in his possession or control at a particular place or not to remove the goods from a...

Section 12 - Hirer may terminate agreement

(1) At any time before the final payment under a hire-purchase agreement falls due, the hirer may terminate the agreement by returning the goods to the owner and giving him written notice of...

Section 13 - Hirer may complete agreement

(1) The hirer under a hire-purchase agreement may give notice in writing to the owner of his intention to complete the purchase of the goods by paying or tendering to the owner on a specified day the...

Section 14 - Adverse possession

(1) Where an owner institutes a suit to enforce a right to recover possession of goods from a hirer and proves that, before the institution of the suit and after the right to recover possession of...

Section 15 - Recovery of possession where two-thirds of price paid

(1) Where goods have been let under a hire-purchase agreement and two-thirds of the hire-purchase price has been paid, whether in pursuance of the agreement or of a judgment or otherwise, or has been...

Section 16 - Provisions where suit instituted

(1) Where a suit is instituted in the circumstances described in section 15 of this Act, the owner shall not take any step to enforce payment of any sum due under the hire-purchase agreement or under...

Section 17 - Where order for delivery of goods postponed

(1) While the operation of an order for the delivery of goods to the owner is postponed under section 16(4)(b), the hirer shall be deemed to be bailee of the goods under and on the terms of the...

Section 18 - Licence required to carry on hire-purchase business

(1) No person after the appointed day. shall carry on hire-purchase business, except under and in accordance with the terms of a current licence authorizing him to do so. (2) Any person who...

Section 19 - Licensing officer

The Minister shall appoint a public officer to be the licensing officer for the purposes of this Act.

Section 20 - Granting of licences

(1) A person may make application for a licence in the prescribed manner, and the licensing officer shall either grant a licence accordingly, either without conditions or subject to such conditions as...

Section 21 - Where renewal of licence refused

Where the holder of a licence applies for and is refused a new licence, or where a person who immediately before the commencement of this Act was carrying on hire-purchase business applies before the...

Section 22 - Appeals

(1) Any person who is refused a licence may appeal to the Minister in writing within one month after the date of the refusal, and the Minister’s decision shall be final. (2) Where a person appeals...

Section 23 - Licence to be displayed

The holder of a licence shall ensure that the licence or a copy thereof is at all times conspicuously displayed in or on every premises in which he carries on hire-purchase business, and if he fails...

Section 24 - Successive agreements between same parties

Where goods have been let under a hire-purchase agreement and at any time after two-thirds of the hire-purchase price has been paid or tendered the owner makes a further hire-purchase agreement with...

Section 25 - Owner to account for proceeds of sale

Where the owner under a hire-purchase agreement enforces a right to recover possession of the goods from the best price reasonably obtainable as soon as is reasonably practicable and he shall be...

Section 26 - Hirer’s refusal to surrender goods not conversion

If, while the enforcement by an owner of a right to recover possession of goods from a hirer is restricted by this Act, the hirer refuses to give up possession of goods to the owner, the hirer shall...

Section 27 - Hirer may require information

(1) If a hirer hands or sends by registered post to the owner a written request therefor, and tenders to the owner a sum of ten shillings for expenses, the owner shall, within fourteen days after the...

Section 28 - Appropriation of payments where more than one agreement

A hirer who is liable to make payments in respect of two or more hire-purchase agreements to the same owner shall be entitled, on making any payment in respect of the agreements which is not...

Section 29 - Limitation on enforcement of agreement

An owner shall not be entitled, by reason of the hirer’s failure to carry out any obligation under a hire-purchase agreement, to enforce - (a) any provision in the agreement for the acceleration of...

Section 30 - Agreement binding on trustee or liquidator of owner

(1) If - (a) in the case of a natural person, the owner is adjudged bankrupt; or (b) in the case of a company, the owner is placed in liquidation, a hire- purchase agreement entered into by the...

Section 31 - Bankruptcy of hirer

If a hirer is adjudged bankrupt, the rights and duties which are the subject of the hire-purchase agreement entered into by the hirer shall vest in his trustee, notwithstanding the terms of the...

Section 32 - Service of notices

(1) Any notice or document required or authorized to be served on or given to an owner or hirer under this Act may be so served or given - (a) by delivering it to him personally; (b) by leaving it...

Section 32A - Minister may determine interest rates etc.

(1) The Minister may, in consultation with the Central Bank of Kenya established under the Central Bank of Kenya Act (Cap. 491), determine and publish - (a) the matters to be taken into account in...

Section 33 - Minister’s power to obtain information

(1) Every person carrying on hire-purchase business shall furnish to the Minister, at the prescribed time and in the prescribed manner, all such information as the Minister may reasonably require for...

Section 34 - False information

Any person who knowingly gives false information in any proposal form or other document completed for the purpose of entering into a hire-purchase agreement shall be guilty of an offence and liable to...

Section 35 - Minister’s power to make rules

(1) The Minister may make rules generally for the better carrying out of any of the provisions or purposes of this Act. (2) Without prejudice to the generality of the powers conferred by subsection...

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