THE EVOLUTION OF LEGAL FORMALITIES IN THE FORMATION OF HIRE-PURCHASE AGREEMENTS IN NIGERIA: A DOCTRINAL ANALYSIS

Abstract

This paper critically examines the evolution of legal formalities governing the formation of hire-purchase agreements in Nigeria. Drawing on a doctrinal methodology, the study traces the development of formal requirements from their common law roots to their current statutory framework under the Hire-Purchase Act, LFN 2004. Initially characterised by informality and minimal documentation, hire-purchase transactions in Nigeria have undergone significant legal transformation to regulate contractual conduct, protect consumers, and promote commercial certainty. The paper analyses key statutory provisions, judicial decisions, and comparative influences that have shaped the legal architecture of hire-purchase agreements in Nigeria. The paper found that the formalities were designed to protect hirers from exploitation and ensure transparency in credit transactions. The paper recommends a thorough legislative review of the Hire Purchase Act to deal with significant limitations in the current legal framework.