HIRE-PURCHASE ACT

Section 12: Effect of suspension of order for delivery up of goods.

1968Section 12 of 21Federal Republic of Nigeria

(1) While the operation of an order for the specific delivery of goods to the owner is postponed under section 10 of this Act, the hirer shall be deemed to be a bailee of the goods under and on the terms of the hire-purchase agreement:
Provided that-
(a) no further sum shall be or become payable by the hirer or a guarantor on account of the unpaid balance of the hire-purchase price except in accordance with the terms of the order; and
(b) the court may make such further modifications of the terms of the hire-purchase agreement, and of any contract of guarantee relating to it, as the court considers necessary having regard to the variation of the terms of payment.
(2) If while the operation of an order for the specific delivery of goods to the owner is postponed as aforesaid the hirer or a guarantor-
(a) fails to comply with any condition of the postponement, or with any term of the agreement as varied by the court; or
(b) wrongfully disposes of the goods,
the owner shall not take any civil proceedings in respect of the failure or disposal against the hirer or guarantor otherwise than by making an application to the court by which the order was made:
Provided that, in the case of a breach of any condition relating to the payment of the unpaid balance of the hire-purchase price, it shall not be necessary for the owner to apply to the court for leave to execute the order unless the court has so directed.
(3) When the unpaid balance of the hire-purchase price has been paid in accordance with the terms of the order, the owner's title to the goods shall vest in the hirer.
(4) The court may at any time during the postponement of the operation of such an order as aforesaid-
(a) vary the conditions of the postponement and make such further modification of the hire-purchase agreement, and of any contract of guarantee relating to it, as the court considers necessary having regard to the variation of the conditions of the postponement;
(b) revoke the postponement;
(c) make an order, in accordance with the provisions of section 10 of this Act, for the specific delivery of a part of the goods to the owner and for the transfer to the hirer of the owner's title to the remainder of the goods.
(5) The powers of the court under paragraphs (a) and (c) of subsection (4) of this section may be exercised, notwithstanding that any condition of the postponement of the operation of the order has not been complied with, at any time before the goods are delivered to the owner in accordance with a warrant issued in pursuance of the order; and where such a warrant has been issued, the court shall-
(a) if the court varies the conditions of the postponement under paragraph (a) of subsection (4) of this section, suspend the warrant on the like conditions;
(b) if the court makes an order under paragraph (c) of subsection (4) of this section for the delivery of a part of the goods to the owner and for the transfer to the hirer of the owner's title to the remaining part thereof, cancel the warrant so far as it provides for the delivery of the last-mentioned part of the goods.
(6) At any time before the delivery of goods to the owner in accordance with a warrant issued as aforesaid, the warrant may, so far as it provides for the delivery of goods, be discharged by the payment to the owner by the hirer or any guarantor of the whole of the unpaid balance of the hire-purchase price, and in any such case the owner's title to the goods shall vest in the hirer.
(7) If in any action to which section 10 of this Act applies an offer as to conditions for the postponement of the operation of an order under subsection (4) (b) of that section is made by the hirer and accepted by the owner in accordance with rules of court, an order under that paragraph may thereupon be made by the court in accordance with the said offer without hearing evidence as to matters specified in that paragraph or in subsection (5) of that section:
Provided that where a guarantor is a party to the action, no such order shall be made before the date fixed for the hearing of the action.

Cite this section

Section 12, HIRE-PURCHASE ACT (1968).

https://repo.podus.ai/laws/hire-purchase-act/section/12/