Question

Nikita a 17-year-old who lived in an apartment, needed a job to pay her rent and bills. She found one advertised online. After attending an interview, Nikita was told that she could have it. However, this meant that she would need an appropriate new computer to fulfil the requirements of the job to be able to work from home as required. Nikita decided to buy a new computer. She went to Orange Computer Store owned by Jasmine and saw a computer that would serve the purpose. It cost $2000, but Nikita only had $1000 to be able to leave as a deposit. Nikita asked Jasmine if she could pay it off. Jasmine felt sorry for Nikita and agreed that she could have the computer in return for a payment of $100 interest free per week until it was paid off. Nikita also handed over her current computer as part of the plan. After a month of work exhaustively in her new role, Nikita decided this was too hard and quit her job. She also stopped making payments on the computer.

Question

Discuss with Jasmine whether she would be successful in suing Nikita for the balance of the money for the computer under contract law. Use case references to support your answer.

Commercial Law subject

Answer 1

Under Hire Purchase Agreement act ,if there is termination or breach of contract by the hirer or purchaser, then the financier Jasmine can sue the hirer for paying the due amount , in case the hirer ( Nikita) fails to pay the instalment. As the ownership lies with the financier and until the hirer or purchaser does not pay the whole amount or all instalment, the financier can ask and can sue for balance money amount due and ask for return of the goods ( in this case the computer) by giving prior notice, and Jasmine can also inspect the computer and can claim for any damages if computer is not in working condition or any discrepancy in goods given

According to this agreement the hirer ( Nikita) is liable to pay the instalment whether the good I.e. computer is put in use or left idle by the hirer, As per Hire Purchase Agreement.

Hence , it is a liability of Nikita to pay the balance amount of the computer to Jasmine under Hire Purchase act.

Even if Nikita is minor 17 years of age , the good she has purchased is considered as a necessary of life, because she needs it for her living , therefore the court may upheld that the minor has to pay the balance amount and return the goods. If the good is proved to be necessary then the contract with a minor cannot be voided