Furniture shop. Image credit

Furniture shop. Image credit

ZIMSEC O Level Commerce Notes: Hire Purchase Act

  • During the Hire Purchase period the goods are insured and owned by the seller.
  • Allows the consumer to have a “cooling off” period if the agreement is signed outside the trader’s premises during which period the consumer may cancel the agreement.
  • If the buyer defaults in payment, the seller has to obtain a court order in order to repossess the goods if at least one-third of the purchase price has been paid.
  • Guards against unfair and unlawful repossession of goods.
  • The rate of deposit is fixed by law.
  • The following information should be easily obtainable on all goods sold on Hire Purchase to allow the consumer to decide whether they can afford the goods:
  • the number and amounts of installments.
  • the cash price of the goods.
  • the Hire Purchase price of the goods.
  • A description of the goods.

To access more topics go to the Commerce Notes page.

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