These are clauses that are expressly prohibited by law, and if they are incorporated into a Hire Purchase agreement by the parties, the law renders them void ab initio (invalid from the beginning).
Section 3 of the Hire Purchase Act provides for these prohibited clauses:
3(a) Unlawful Repossession:There must be no clause allowing the owner to repossess goods from the hirer’s premises without a court order. Any such clause is void.
3(b) Termination Restriction:Any clause that prevents the hirer from terminating the agreement is void. The hirer always has a right to terminate the contract, and cannot be held liable for merely exercising that right.
3(c)Excessive Liability:Any clause that imposes greater liabilities on the hirer than those provided under the Act is void.
3(d) Dual Agency Prohibition:There must not be any clause that makes the agent of the owner also an agent of the hirer.
3(e) Responsibility of Owner’s Agent:Any clause that seeks to exempt the owner from liability for the acts of his agent is null and void.
3(f) Forced Use of Services:A clause that forces the hirer to use any specific service provider against his will is prohibited.
CONCLUSION.
The Hire Purchase Act strictly prohibits certain clauses that are unjust and protects the hirer’s right to fair treatment, proper ownership transfer, and quiet possession.
