1. Ben 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 lsaby as a gift. The following month, their relationship become strained and ben moved out of the matrimonial home taking car with him. lsaby feels aggrieved and has come to you with mandatory instructions to file a case against ben for recovery of the car

Identify the legal principles applicable in the above case and advise lsaby.

2. The hire purchase act implies some terms in every hire purchase agreement. One of these terms is merchantability. This is a condition that the goods are of merchantable quality unless they are second hand. There are however some instances where its conditions may be dispensed with.

Outline two of the instances when merchantability may be dispensed with.