When you`re buying a product but cannot afford to pay for it in full, a hire purchase agreement may be your best option. This type of agreement allows you to pay for the product over a period of time, with interest, until you`ve paid the full amount. However, in Kenya, it`s important to register a hire purchase agreement to ensure that the transaction is legal and binding.
The Hire Purchase Act
The Hire Purchase Act of 1968 governs hire purchase agreements in Kenya. Under this act, any hire purchase agreement that involves goods worth over Kshs 500 must be registered. Failure to do so can lead to legal complications and may even make the agreement unenforceable in court.
Registering Your Hire Purchase Agreement
To register a hire purchase agreement in Kenya, you must go to a government office known as the Registrar of Hire Purchase Agreements. You`ll need to provide the following information:
– The names and addresses of the buyer and seller
– Details of the goods being purchased
– The amount of the deposit
– The total amount to be paid, including interest
– The period of time over which payments will be made
Once you`ve provided this information, you`ll be required to pay a registration fee. The fee is calculated based on the total amount of the hire purchase agreement.
Why Registering Is Important
Registering a hire purchase agreement is a legal requirement, but it also protects both the buyer and seller. It ensures that the agreement is legally binding and enforceable in court. If a dispute arises between the buyer and seller, the registered agreement can be used as evidence.
In addition, registering a hire purchase agreement can help prevent fraud. Unscrupulous sellers may try to sell goods that they don`t actually own or have the right to sell. Registering the agreement confirms that the seller legally owns the goods and has the right to sell them.
Conclusion
If you`re considering a hire purchase agreement in Kenya, it`s important to register the agreement to ensure that it`s legally binding and enforceable. By providing the required information and paying the registration fee, you can protect yourself from fraud and legal complications. Make sure to work with a reputable seller and follow the legal requirements for registering your hire purchase agreement.