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12 Aug 2018

August 12, 2018

The Rule In Rylands Vs Fletcher





The rule in Rylands vs Fletcher is one that borders on strict liability. In the case, the defendant got some contractors to construct a reservoir on his land. Due to the negligence of the contractors, water leaked from the reservoir to the plaintiff’s coal mine located below the land, thus causing extensive damage to it. The conduct of the defendant didn’t appear to come within the scope of any existing tort. Thus, leading to the formulation of the rule in Rylands vs. Fletcher[1]. This rule is embodied in the pronouncement by Blackburn J:
The person who for his own purposes, brings on his land and collects and keeps there anything likely to do mischief if it escapes must keep it at his own peril and if he does not do so, is prima facie answerable for all the damage which is the natural consequence of its escape. When the case got to appeal, Lord Cairns, in the House of Lords, added an extra requirement that the thing brought must be a non-natural user of the land.
Ingredients of the Rule in Rylands vs Fletcher
From the above stipulations, it can be deduced that there are some ingredients that need to be established before the rule in Rylands vs Fletcher can be applicable. They are:
(a) Bringing on the Land and Accumulation of the thing
(b)The thing must be a non-natural user of the land
(c) There must be an escape

The rule in Rylands vs Fletcher applies to anything which is likely to do mischief if it escapes. This extends beyond things which are inherently dangerous like gas, petrol or chemicals. It includes harmless things like water which could become dangerous if accumulated in quantities large enough to do mischief.
Bringing and Accumulation of the Thing to the Land

What this means is that in order for the rule in Rylands vs Fletcher to apply, the defendant has to artificially bring to his land the subject matter likely to do mischief. Hence if the thing which causes damage is something which is naturally on the land, the defendant would not be liable.

In the case of Wilson vs. Waddell[2] it was held that the defendant was not liable for water that seeped into the plaintiff’s mines since the water was naturally located in an underground reservoir. In the case of Giles vs. Walker[3] it was held that there would be no liability for vegetation that escapes if it grows naturally on the land in the form of weeds and other uncultivated growth. However, there would be liability if the trees were artificially planted by the plaintiff.

Non-natural Use of the Land
The meaning of natural use of the land can be viewed from two perspective. The first definition of natural use of the land is the use on a land of something which is not in any way artificial. Thus, the growing of weed on a land is a natural use of the land since there is nothing artificial about it. The second meaning of natural use of the land is the use of land which is natural and usual although it may be artificial.

An ideal definition of non-natural use of the land is conveyed in the words of Lord Moulton in the case of Rickards vs. Lothians[4]. He defined non-natural use of the land as:
… Some special use bringing with it increased danger to others, and must not merely be the ordinary use of land or such a use as is proper for the general benefit of the community…
Thus, in this case, it was held that water pipe installations in buildings is a natural user of the land, making the rule in Thus, in this case, it was held that the water pipe installations in buildings is a natural user of the land, making the rule inRylands vs Fletcher inapplicable.

There must be an Escape
What this means is that for this rule to apply, the subject matter must have escaped into the land of the plaintiff. In the case of Read vs. Lyons[5], escape was defined by Lord Simmons as the escape from a place in which the defendant has control or occupation of the land to a place over which he has no control or occupation.
In the case of Ponting vs. Noakes[6], a horse reached out and ate a poisonous leaf from a tree in the defendant’s land. This resulted in the death of the horse. The court held that there was no escape since the tree did not extend past the defendant’s boundary.

Defences to the rule in Rylands vs Fletcher
The following are some of the defences that can be used to excuse liability under the rule in Rylands vs Fletcher:
1.     Consent of the Plaintiff
2.     Default of the plaintiff
3.     Act of God
4.     Act of a stranger
5.     Consent of the Plaintiff

Consent of the plaintiff
This is a general defence in the law of torts. It is embodied in the maxim: violenti non fit injuria. Thus, if the plaintiff consents, directly or indirectly, to the use of the property he cannot complain about any subsequent damage. If for example, both tenants in a building agree to the use of a tank placed on the defendant’s floor, if the water subsequently leaks to the defendant’s apartment and causes damage, he cannot complain because he has already consented to it.
However, the plaintiff would have a claim if he can prove that the defendant was negligent. An example of this is if the defendant left the tap running, hence causing flooding of the plaintiff’s place of residence.

Default of the Plaintiff
The rule in Rylands vs Fletcher would not be applicable in a situation in which the damage suffered was as a result of the plaintiff’s own default. In the case of Dunn vs. Birmingham Canal Co[7] the plaintiff knowingly constructed a mine below the defendant’s canal. It was held that since he knew of the danger of constructing beneath the canal but he still went ahead, he had courted liability and as such would not have any remedy.

Act of God
In a situation where the damage caused was as a result of unexpected natural disaster, it would be regarded as an act of God, thus freeing the plaintiff from liability. In the case of Nichols vs. Marshland[8], the defendant had been collecting an artificial pool for years by diverting water from a stream. Subsequently, a very violent rain fell which destroyed the pools and caused water to destroy the plaintiff’s bridges. The courts held that there was no liability since the harm was caused by an unexpected natural event.

Act of a Stranger
The defendant would not be liable under the rule in Rylands vs Fletcher if the damage that resulted came about from an unpredictable act of a stranger. For example, in the case of Perry vs. Kendricks Transport Ltd[9], the defendant was not liable for damage that resulted from the acts of little children who threw a lighted match into the petrol tank of a vehicle.
Also, in the case of Box vs. Jubb[10], the owners of a reservoir were not liable for damage caused to the plaintiff’s land from the overflowing of the reservoir. This was due to the fact that it occurred because a third party emptied its reservoir into the plaintiff’s reservoir.

Application of the Rule of Rylands vs Fletcher in Nigeria
The rule of Rylands vs. Fletcher is applicable in Nigeria through numerous court decisions. The most popular of these is the case of Umudje vs. Shell BP Petroleum Development Co of Nigeria Ltd[11]. In this case, during the cause of oil exploration by the defendant, it blocked a stream from flowing, thus interfering with the fishing rights of the plaintiff. Also, the waste oil accumulated by the defendant escaped to the plaintiff’s land, causing damage.
The court held that the rule in Ryland vs. Fletcher didn’t apply in the case of blocking the stream since the water from the stream didn’t escape to the plaintiff’s land. On the second issue of oil spillage, the defendant was held liable since the waste oil, a non-natural user of the land, was accumulated and it escaped to the plaintiff’s land, causing damage.

References
[1] 1866 L.R 1 Exch 265
[2] (1876) 2 App. Cas. 95
[3] (1890) 62 LT 933
[4] (1913) Ac 263 @ p 279
[5] (1947) AC 156
[6] (1894) 2 QB 281
[7] 1872 LR 7 QB 244
[8] (1876) 2 Ex D1
[9] 1956 1 WLR 85
[10] 1879 4 Ex D 76
[11] 1975 11 SC 155

Source: http://djetlawyer.com
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August 12, 2018

The Principles of Private and Public Nuisance




Nuisance is a legal term which has no definite meaning. It generally covers acts unwarranted by law which causes inconvenience or damage to either the individual or the public in the exercise of rights common to all subjects, acts connected with the enjoyment of land, other environmental rights and acts or omissions declared by statute to be nuisance.
Nuisance is a term used to register or express one’s condition of inconvenience  or annoyance caused by a direct or indirect action of another person. It can also be said that nuisance is the negative effect of somebody’s action or omission against the normal enjoyment of life by the complainant.

The Tort of nuisance has a restricted scope and not every inconvenience or annoyance is actionable.
The situations described as nuisance include:
a.         Emissions of noxious gas or fumes from a factory.
b.         Emission of noxious gas or fumes from moving Lorries, trains or aircraft.
c.         Noise from the crowing of cocks in the early hours of the morning.
d.         The obstruction of public highway for social or religious activity.
e.         The collapse of a building due to the vibrations of another company next door.

Nuisance can be classified into the following:
1.     Private Nuisance.
2.     Public Nuisance

PUBLIC NUISANCE
Public nuisance occurs when a person by his action or inaction causes inconvenience to the general public. This could be in the form of blocking the road, the release of fumes from a factory, the making of loud noise and so on. Public nuisance is generally a crime that is actionable only by the Attorney General. In Nigeria, public nuisance has been made criminal by the provision of S.234 of the Criminal Code.

However, in the case of Amos vs. Shell BP Nigeria Ltd (1974) 4 E.C.S.LR, it was held by the court that a private individual would have a right of action when it comes to public nuisance if he can establish before the court that by the defendant’s action, he has suffered damage over and above other members of the society.

In the case of Rose vs. Miles (1815) 105 ER 773, the defendant wrongfully obstructed a public navigable creek which obstructed the defendant from transporting his good through the creek. This resulted in the plaintiff having to transport his goods by land, causing him to incur extra costs. It was held that although the act of the defendant was a public nuisance, since the plaintiff was able to prove that he suffered loss over and above other members of the public, he had a right of action against the defendant. It should be noted that for a right of action to arise in public nuisance, it is an individual that has to prove extra loss suffered by him. Thus, a community cannot bring an action collectively to claim losses suffered through a defendant’s action. In the case of Amos vs. Shell BP Nigeria Ltd (Supra), the defendant constructed a temporary dam in a public navigable creek. This resulted in the flooding of the farmlands of the people of Ogbia community in rivers state. Also the members of the community could not pass through the creek on their canoes in order to go to and from the market. Thus, the plaintiff sued on behalf of the community. The court held that in the absence of proof of extra loss suffered by individual members of the community, the community could not bring a collective action against a public nuisance.
The reasoning behind this judgement is the consideration of the fact that the community, in suing for a public nuisance, is attempting to usurp the role of the state in the modern Nigerian dispensation.

PRIVATE NUISANCE
Unlike public nuisance, private nuisance is a tort. It was put in place in order to protect the individual owner or occupier of land from substantial interference with his enjoyment thereof. As previously stated, anyone that has a grievance to settle under private nuisance can bring it to the court of law on a personal basis.

Liability in Private Nuisance
The basic issue that threads throughout the tort of private nuisance is to find a way to balance the right of the defendant to enjoy the use of his land legally with the right of the plaintiff to use and enjoy his own land without any interference from the defendant. In order to settle this issue, two criteria have been put up by the courts. They are:
1. The injury complained of should be:

a)     Sensible (In the case of material damage to land): the damage which the plaintiff complains about should not be one that is flimsy or minimal. The plaintiff must at least bring evidence of reduction in the value of his property.
In the case of Ige vs. Taylor Woodrow Nig. Ltd (1963) L.L.R. 140, the defendant carried out pipe driving due to the fat that they wanted to erect a structure in Lagos. Due to this process of pipe driving, a large amount of vibration was usually caused. This subsequently caused structural damage to the plaintiff’s house. As a result, the house had to be pulled down. The court held that in this situation, the material damage suffered by the plaintiff is one that is quite sensible. Thus, the plaintiff was held to have a right of action in private nuisance.
(b) Substantial (In the case of interference with enjoyment): When a plaintiff is complaining of an interference with the enjoyment of his land, this interference with enjoyment is one that has to be regarded as substantial. The criterion for measuring substantial interference was laid down by the courts in the case of Vanderpart vs. Mayfair Hotel Co Ltd (1930) 1 Ch. 138, where the court observed that:

Everybody is entitled as against his neighbour to the comfortable and healthy enjoyment of the premises occupied by him, and in deciding whether, in any particular case, his right has been interfered with and a nuisance thereby caused, it is necessary to determine, whether the act complained of is an inconvenience materially interfering with the ordinary physical discomfort of human existence, not merely according to elegant and dainty modes and habits of living, but according to plain and sober and simple notions obtainable among English people.
This test is also applicable in the Nigerian Jurisdiction. It was applied in the case of Abiola vs. Ijoma(1970) 2 All N.L.R 268. In this case, both parties were neighbours but the defendant was rearing poultry. In addition to the noise coming from the poultry, the smell from the birds affected the health of the plaintiff. The court held that in this situation, the interference with enjoyment was a substantial one, thus, giving the plaintiff a valid right of action under private nuisance.
2. The conduct of the defendant is unreasonable in the prevailing circumstance: In order to determine this condition, the following has to be taken into consideration:
1.          The Locality
2.         The utility of the defendant’s conduct
3.         Plaintiff’s abnormal sensitivity
4.         Plaintiff’s malice:
5.         Duration of Harm.

Defences
The defendant has a range of means of defence in a claim for nuisance against him in an action. The following defences may be available to the defendant in a claim against him for nuisance.
1)                 Reasonableness of His Act or Omission: A defendant may plead that alleged act of a nuisance was a normal or a  reasonable act to be expected in that circumstance and in that community at that period in time and that there was no malice in the act complained against. A person who decides to build his residential house in an industrial estate cannot complain of interference or inconvenience occasioned by noise coming from the generator of a company near to his house.
2)                 Statutory Authority: As a general rule, the fact that there is a  valid permit by a Government Department is not a licence to commit nuisance. However, a land that has been earmarked for a purpose by statutory authority, carrying out such provision will be a defence under statutory authority, especially when the defendant is not negligent in doing just that.



For example, a land earmarked for the construction of roads was used in building a residential house. That can be demolished and if the owner of the house brings an action against demolition or for compensation or for specific performance, the Government Department can rely on the statute as its authority to carry out the demolition as a defence.
3)                 Act of God: Act of God may be a defence in some circumstances. A road that is carved in and cut into two after a heavy rain and flooding of the  area may not be attributable to the contractor that constructed the road. This is because, the defendant can plead Act of God in that circumstance.
4)                 Act of a Stranger: An act of a stranger may be a good defence if it is shown that the defendant has taken steps to discontinue the effect of the strangers act immediately the act came to his knowledge.
5)                 Consent: Consent will be a defence if the defendant has acted within the terms of agreement and has been reasonable in his act.
Nuisance is a situation wherein the action is bringing enjoyment and financial increase to one party and the other party is suffering from the same action or omission. Nuisance can be public or private. The plaintiff is the party who suffers from the act or omission causing nuisance. The private person brings an action in private nuisance on his own behalf and in his private interest. The Attorney-General brings an action in public nuisance on behalf of the state and in the interest of the society. He represents the whole people with the power and resources of the state. It has been said earlier that public nuisance is a crime. As such, it is the duty of the Attorney-General to initiate the institution of criminal cases against such persons for their acts or omission constituting public nuisance.


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9 Aug 2018

August 09, 2018

Recovery of Goods Under Common Law and the Act





Recovery of Goods under the Common Law
Under the common law, the owner’s right to recover the goods from the hirer is unqualified. If there is any slight default in payment, he can take possession of the goods, even without a court order. This worked hardship on the hirer in a lot of respects.
Firstly, the hirer has no right to redeem the goods after a default in payment of instalments. This is regardless of the fact that the default is regarding the last instalment. See Atere vs. Amao 957 WRNLR 176.
Secondly, failure on the part of the hirer to pay the instalment on the particular date constitutes a breach, even though there it is just a one day delay. This entitles the owner to retrieve the goods even if it the default concerns the payment of the last instalment. See Bentworth Finance Nig Ltd vs. Debank Transport Ltd 1968 3 ALR 52.
Thirdly, the hirer has no legal interest in the goods after they have been recovered. This is regardless of the fact that the goods, when sold, might yield a sum which is more than the amount owed by the hirer- Williams vs. UAC Ltd 1937 3 NLR 134.

Recovery by the Owner Under the Act
It is important to note that the most common remedy available is an action in court against the hirer, which the hirer could frustrate the effort of the owner in this regard by absconding with the goods to an unknown destination with the goods being used in a manner detrimental to the goods itself. Recovery of Goods under the Act will also be treated.
Under common law, as we have already discussed, the extremity of the right to repossession and the harshness of judicial interpretation leave the hirer with little or no claim where the owner exercises his right.

The Act has removed the power where the owner can repossess goods at his whim and caprices.
Section 9 (1) of the Act places a restriction on the right of the owner to recover the property otherwise than by action especially where the hirer has paid a relevant proportion of hire- purchase price. For the purpose of this Act what is relevant proportion has been defined as:
           a.      In the case of goods other than motor vehicle its one half
           b.      While in motor vehicle it is three fifths.
If the owner recovers the goods in contravention of the rule then the  hire  purchase agreement  is determined and the hirer and his guarantor are relieved of any liability under the agreement.

It is important to also note that the above provision has no effect where the hirer has exercised his right to terminate the agreement or the bailment. In this instance, the owner can repossess the goods whether the relevant proportion has been paid or not. The position under section 9 of the Act has been established by the courts. In Adesanya v. Balogun & Ors (CCHCJ/11/73), the hirer paid N1,647.00 out of the total hire-purchase price of N1,843.00 and  sued  for damages for seizure of the goods by the owner, without any court order. The seizure was held wrongful, and the court released the hirer of all liability under the agreement.  The court, further ruled that he could recover from the owner the sum N1, 647.00 which he had already paid to the owner. The Act is silent as to what happens where the hirer defaults before the  payment  of  the relevant proportion of the hire-purchase price. It would appear that the common law rule will apply in such an instance.
The statutory restriction imposed on the owner under section 9(1) of the Act protects the goods from repossession not only where the relevant proportion has been paid but also where it has been tendered by or on behalf of the hirer or any guarantor.

Relaxation of Owner’s Restricted Right of Repossession
The injustice of retaking the goods by the owner has been remedied by the restriction on the right of repossession by the owner other than by action after the relevant proportion has been paid or tendered. This restriction received the acclamation of consumers but was widely condemned by owners of goods as radical, ill-timed and retrograde.

The hardship inflicted on the owner by this provision is where the hirer defaults in payment after paying the relevant three fifth of the hire-purchase price and then abscond with the goods to an unknown address, and the owner remedy is an action in court where there is default in payment. Since the whereabouts of the hirer may remain unknown, any action brought by the owner may prove expensive and dilatory. This action drastically reduces the hire-purchase agreement especially in relation to the motor vehicle. The new section 9(5) of the Act has seemingly reduced the hardship on the owner in relation  to the repossession of goods.

Owner’s Obligations under the New Section 9(5)
The new section 9(5) appears to have at first glance relaxed the restricted right of repossession of goods after the payment of the relevant proportion. But the section has not done away with the right of action of the owner. It only lays down some conditions to be fulfilled.

The case of Tabansi (Agencies) Ltd v. Incar Nigeria Ltd (CCHJ/7/74), shows that the introduction of the new section under the amendment Act has not done away with the right of action but that the owner has to fulfill certain conditions before he can invoke section 9(5) of the act. 

The conditions are as follows:

                              i.            Keep the removed goods in his possession and protect them from damages or depreciation.
                                              ii.            Retain them (in any remises he should determine) pending the  determination  of  the case.
                                            iii.            Be liable to the hirer for any damage or loss which may be caused by the removal.
These duties placed on the owner under Section 9(5) must be adhered to strictly for an action under section 9 (1) to succeed. 

In Incar Nigeria Ltd v. Adeyemi (1976) CCHCJ/1127, the defendant bought a motor vehicle from the plaintiffs under a hire-purchase agreement of November 4, 1972. It is being agreed that the hire purchase price of N26, 680.00 was to be paid in twelve instalments, commencing January 30, 1973. The plaintiffs removed the vehicle in August 24, 1974 from a garage where the vehicle was undergoing repairs, at which time a total of N18, 686.76 had been paid, an amount above the relevant proportion, but he was in arrears of May, June and July, 1974. The owner then sold the vehicle after they had sued for arrears and repossession of the vehicle. The defendant counterclaimed damages on the ground of unlawful repossession. The court thereon held that the owner was liable on the counter claim for by selling the vehicle he violated the provisions of Section 9 (5) of the Act and the attendant  consequence  is  provided for under section 9 (2) i.e. the sum of N18, 686  already paid  was to be refunded to  the hirer with cost of N250.


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8 Aug 2018

August 08, 2018

The Hirer's Right of Termination and the Minimum Payment Clause



Under the Common Law

Under the common law, the hirer’s right to determine a hire a purchase agreement was unqualified. No formality was required in order to enable the hirer to terminate the agreement. If the object of desire loses its attraction on closer acquaintance – if faults are developed or defects discovered – if a coveted treasure is becoming a burden and an encumbrance, it is something, surely to know that the transaction may be closed at once…
Under the common law, the owner could make use of the minimum payment clause when the hirer terminated the transaction or he breaches the agreement.

In the case of Associated Distributors Ltd vs. Hall 1938 2 K.B 83, the hirer returned the bicycle he hired after paying just one instalment. There was a minimum payment clause stating that upon termination of the agreement, the hirer would pay half of the total hire purchase sum. The court held that since this was the agreement of the parties and it didn’t amount to a penalty, the hirer has to pay this sum of money.

In the case of Cooden Engineering Co Ltd vs. Stanford 1953 1 QB 86, after the hirer defaulted on the payment of instalments, the owner seized the goods and sued under the minimum payment clause. The clause provided that in the case of termination, the hirer would pay a hundred percent compensation. The court held that this was an instance of a penalty and thus, the minimum payment clause could not be applicable.

Under the Hire Purchase Act
The minimum payment clause is usually for the protection of the hirer. It could assume all sorts of forms. There are also cases of stipulation for payments of a fixed percentage of the hire purchase price or an amount payable by way of agreed depreciation of the goods.

Mode of Assessment of Amount Payable by the Hirer: Section 8 (1) of the Act gives the hirer a right to terminate the agreement. However, the event of termination of the agreement, the hirer is liable to effect a fifty percent minimum payment. If the hirer has paid more than half of the hire purchase, he will not be expected   to bear further financial burden by reason of his terminating the agreement, except such instalments which have accrued as arrears. The assessment of the hired liability under section 8 (1) contemplates that any stipulation with regard to minimum payment clause in the hire-purchase agreement by the parties will be valid, if the amount specified therein is less than the amount payable.


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August 08, 2018

Forms of Hire Purchase Agreement



Formalities Under the Common Law
Under the common law, there was no particular form for a contract of hire purchase. It could be oral or written, with or without seal. However, in practice most hire purchase contracts are in writing in order to adequately spell out all the necessary terms of the agreement.

Formalities Under the Hire Purchase Act of 1965
The hire-purchase agreement, unlike the position under the common law, all hire-purchase agreements which are intended to operate or fall within the provisions of the Act must comply with certain provisions or procedural requirements as to form and content stipulated under the Act. They can basically be categorised into the following.

Written Information on Cash Price of Goods

Before any hire-purchase agreement is concluded, the owner shall state in writing to the prospective hirer, otherwise than in the note or memorandum of the agreement, a price  at  which the goods may be purchased by him in cash.

The Note or Memorandum

Section 2 (2) (a) of the Act states that: “there must be a note or memorandum of the agreement made and signed by the hirer and by or on behalf of all other parties to the agreement.”

In this instance, what is required is that a note or memorandum must be in writing evidencing the agreement, and that it is not necessary for the hire-purchase agreement to be in writing. In commercial practice, hire-purchase is usually evidenced by a standard  form  agreement which  is required to be signed by the hirer, and any other party. Initially, the agreement may be made orally, but within 14days it must be followed by a signed memorandum.

Signature

The hirer must sign personally; The memorandum or note must be signed not only by the hirer but also by the other parties to the agreement while the other party may sign through their agents.


The non-compliance of the above provisions of the law on the formalities of Hire purchase agreement is not fatal to the agreement until it is proved that such con compliance is likely or has resulted into miscarriage of justice against the hire.
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August 08, 2018

Hire Purchase and the Implied obligations of the Owner and Outright Obligations of the Hirer


       
    
Obligations of the Owner
The implied terms have been described as warranty and condition. They bear the same meaning ascribed to them under the Sale of Goods Act. Distinction is however provided in the definition under Section 20(1) where –warranty is defined as a non-essential term, the breach of which entitles the hirerto sue for damages only. Condition is not given a statutory definition
– but by implication, the difference lies in the breach – the hirer is entitled to reject the goods and treat the contract as repudiated.
  1. Delivery of the Goods: It is the duty of the owner to deliver the goods to the hirer when due. The goods must also be delivered in good condition.
  2. Title: Before goods can successfully be assigned to a contract for hire purchase, the owner must have a title to the goods.
  3. Description of the Goods: The owner of the goods must ensure that the goods are delivered according to the buyer’s description. Also, the goods must fit their description.
Fitness and Quality of the Goods: The goods must be of merchantable quality and they must fit the purpose for which they were hired. However, if there is any defect in the property, it should be something that the owner can easily discern. For example, in the case of Anoka vs. SCOA Warri (1955/56) WNLR  the hirer returned a vehicle due to defect in its engine. The court held that the implied term of fitness for purpose would not be applicable here due to the fact that the defect was something which the owner couldn’t easily discern. He couldn’t have ordinarily known of a fault in the engine unless he took the engine apart.
  1. Quiet Possession: The hirer has a right to quiet possession of the goods. The owner is obligated to abstain from unnecessarily disturbing the buyer.
  2. Furnishing Information: There is a general obligation on both parties to always furnish information regarding the hire purchase contract. This information includes things like arrears paid, date of payment, balance remaining etc.
Obligations of the Hirer
  1. Acceptance of Delivery: It is an obligation on the hirer to accept the goods when they are delivered by the owner. If doesn’t he can be sued for non-acceptance.
  2. Duty of care: The hirer has a duty to use the goods in ways that would not occasion damage to the goods.
Payment of installments: This is one of the main functions of the hirer. He has to pay installments for the hirer purchase as and when due. There are a plethora of cases to help support this assertion. In the case of Animashawun vs. CFAO (1960) LLR 113 the hirer defaulted in payment and the owner repossessed the goods. The court held that since the hirer had failed to pay his installments at the required time, the owner had the right to repossess the goods.
  1. Redelivery of the Goods: If the hirer purchase agreement falls through, it is the duty of the hirer to redeliver the goods to the owner.
  2. Duty not to sell the Goods: The hirer has a duty not to sell the goods until the last installment has been paid.
  3. Duty not to act Inconsistent to Owner’s Right: The hirer also has a duty not to act in relation with the goods in a manner that is inconsistent with the right of the owner. He can only do this when the goods have been completely purchased.

          6.   Hirer’s right of termination: The hirer’s right of termination is set out in section 8 of the Act. it provides that a hirer  shall,  at any time, before the final payment under a hire-purchase agreement, be entitled to determine the agreement by giving notice of termination in writing to any person entitled or authorized to recover any sum payable under the agreement.
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