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| Title: | The protection of the credit consumer under the Hire-Purchase Act of Malawi: a swing from caveat emptor to caveat venditor? |
| Author: | Chilumpha, C.H. |
| Year: | 1989 |
| Periodical: | Lesotho Law Journal: A Journal of Law and Development (ISSN 0255-6472) |
| Volume: | 5 |
| Issue: | 1 |
| Pages: | 153-160 |
| Language: | English |
| Notes: | biblio. refs. |
| Geographic terms: | Malawi Central Africa |
| Subjects: | credit consumer protection law Hire Purchase Act (Malawi) Consumer credit consumers |
| Abstract: | In Malawi credit agreements are governed by the Hire-Purchase Act. To limit the possible exploitation of the credit consumer by the seller, the Act contains a number of provisions which whittle away the contractual power of sellers of goods on credit in favour of credit consumers. This article discusses these provisions, particularly those relating to the disclosure of the terms of the credit agreement and the curbs on the use of oppressive terms in these agreements. In circumscribing the freedom of contract, the Hire-Purchase Act diverges from the general law of contract. However, the Act does not represent a real swing from caveat emptor to caveat venditor. Firstly, its protective provisions are limited in their application since they do not apply to credit agreements where the purchase price exceeds 3,000 kwacha. Moreover, by requiring that the seller disclose terms for the sale of goods on credit after the customer has committed himself to the purchase, and by omitting to require disclosure of rates of finance charges, it fails to help on credit. But perhaps its biggest inclination to caveat emptor lies in the fact that its regulatory model follows the approach of the general law of contract. If the credit agreement fails to comply with the protective provisions of the Act, that merely gives the credit consumer the contractual right to resist enforcement of the agreement by the seller. If, through ignorance or otherwise, the credit consumer is unable to do so, then the object of the Act will be defeated. Notes, ref. |