Hire-Purchase Act, 1974 (NRCD 292)
Section 16—Third Parties.
(1) Where a hirer or buyer under a hire-purchase or conditional sale agreement—
(a) resells, pledges or otherwise disposes of the goods for value to a third party under such circumstances that the sale, pledge or other disposition would not, but for this section, transfer any title to the goods to the third party, and
(b) does anything which gives the owner or seller a right to terminate the agreement and recover the goods under sections 8 to 11,
the third party may retain possession of the goods for the period of sixty days specified in subsection (6), or, if they have been repossessed by the owner or seller, the third party shall be entitled to recover possession of the goods upon a request in writing to the owner or seller and may thereafter retain the goods for the period of sixty days specified in subsection (6).
(2) If within sixty days the third party pays or tenders to the owner or seller either—
(a) all amounts due and unpaid from the hirer or buyer to the owner or seller; or
(b) the total due under any three instalments due and unpaid from the hirer or buyer to the owner or seller,
whichever is less, the rights and obligations of the hirer or buyer shall be transferred to the third party who thereafter shall be treated as the hirer or buyer for the purposes of the agreement and this Decree.
(3) Where the third party pays or tenders the total due under any three instalments under subsection (2)(b)—
(a) the third party shall not be liable to the owner or seller for any amount then outstanding in excess of the said three instalments;
(b) the third party shall be entitled to recover from the hirer or buyer the amount of the said three instalments which he has paid to the owner or seller;
(c) the owner or seller shall recover from the hirer or buyer all amounts then outstanding in excess of the said three instalments;
(d) the contract between the third party and the hirer or buyer shall terminate except with regard to the payment of all amounts then outstanding.
(4) Where a third party has paid nothing to the hirer or buyer or is in arrears of payment to the hirer or buyer, he shall pay to the owner or seller not only the said three instalments but also what he owes to the hirer or buyer:
Provided that the total amount so payable shall not exceed the total of all amounts due and unpaid from the hirer or buyer to the owner or seller, and that the owner or seller shall credit to the third party in respect of immediate future payments payable to him by the third party all amounts so paid to him by the third party in excess of the said three instalments.
(5) Nothing in this section—
(a) derogates from the powers of a hirer or buyer in whom the property in goods has vested;
(b) affects the liability of the hirer or buyer for any wrongful sale, pledge or other disposition for value of the goods or documents of title;
(c) derogates from any liability of the hirer or buyer to a third party or to the owner or seller.
(6) For the purposes of this section, the sixty-day period shall commence—
(a) when the third party recovers possession of goods from the owner or seller, if the owner or seller has repossessed the goods; or
(b) when the seller or owner notifies the third party in writing of his right to repossess the goods or of his right to bring an action to repossess the goods pursuant to sections 8 to 11 of this Decree.
(7) This section shall apply to all goods which have been let under a hire-purchase agreement or sold under a conditional sale agreement, and which are subsequently transferred under any sale, pledge, or other disposition for value to any person receiving them in good faith and without notice of the hirer's or buyer's lack of title, notwithstanding any other provision in this Decree.
Subject : Hire-Purchase Trading
Procedure to Follow
Not Avaiable
Responsible Institution
Ministry of Trade, Agribusiness and Industry
Ministries
- Email: info@moti.gov.gh
- Website: www.moti.gov.gh
- GPS: GA-144-0150
- Telephone: 0500073887
Relevant Forms to Download
Not Available
Online System
Link Unavailable
Fees/ charges
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