Hire Purchase Act, 1972
10. Right to hirer to terminate agreement at any time.-
(1) The hirer may, at any time before the final payment under the hirer-purchase agreement falls due, and after giving the owner not less than fourteen days, notice in writing of his intentions so to do and re-delivering or tendering the goods to the owner, terminate the hire-purchase agreement by payment or tender to the owner of the amounts which have accrued due towards the hire-purchase price and not been paid by him, including the sum, if any, which he is liable to pay under sub-section (2).
Where the hirer terminates the agreement under sub-section (1), and the agreement provides for the payment of a sum named on account of such termination, the liability of the hirer to pay that sum shall be subject to the following conditions, namely:-
Where the sum total of the amounts paid and the amounts due in respect of the hire-purchase price immediately before the termination exceeds one-half of the hire-purchase price, the hirer shall be liable to pay the difference between the said sum total and the said one-half, or the sum named in the agreement whichever, is less.
Nothing in sub-section (2) shall relieve the hirer from any liability for any hire which might have accrued due before the termination.
Any provision in any agreement, whereby the right conferred on a hirer by this section to terminate the hire-purchase agreement by him under this section, shall be void.
Nothing in the section shall prejudice any right of a hirer to terminate a hire-purchase agreement otherwise than by virtue of this section.