Ben Moses purchased a motor vehicle from Arizona Motors Ltd. under a hire purchase agreement at a cost of Sh.600,000 payable in twelve installments. After paying six installments, he gave the car to his wife IsaOgeto as a gift. The following month, their relationship became strained and Ben Moses moved out of the matrimonial home taking the car with him. IsaOgeto feels aggrieved and has come to you with mandatory instructions to file a case against Ben Moses for recovery of the car. Identify the legal principles applicable in the above case and advise IsaOgeto.

Legal principles that are applicable

  • Property in a hire purchase contract does not pass until the hirer has paid the final instalment, and
  • Exercise the option to purchase the goods.
  • Therefore under the doctrine of nemo dat, Ben Moses has no title to pass to lsaby.
  • The title of the car is still in the name of Arizona Motors Ltd. until Ben Moses pays the last instalment.
  • lsais a stranger to the hire purchase contract between Ben Moses and Arizona Motors Ltd. under the doctrine of privity of contract.
  • Isacannot successfully sue Ben Moses for the recovery of the car
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