i) The goods become protected goods. (1 mark)

Protected goods are goods which have been let under a hire-purchase agreement, one-half of the price or total price of which has been paid, whether in pursuance of a judgment or otherwise, or tendered by or on behalf of the hirer. (2 marks) In relation to which the hirer has not terminated the hire-purchase agreement or in the case of a hire-purchase agreement, the bailment, by virtue of a right vested in the hirer. (2 marks)

ii) The possible implications of the actions of the officials of Yaro Ltd under the hire-purchase agreement:

• The owner shall not enforce a right to recover possession of protected goods from the hirer otherwise than by an action (court action).
• Where the owner recovers possession of protected goods in contravention under the Hire-purchase Act, N.R.C.D. 294, the agreement if not previously terminated, is terminated, and
• The hirer is released from liability under the agreement and is entitled to recover from the owner, in an action for money had and received, the sums of money paid by the hirer and the security given in respect of the agreement.
• The guarantor is entitled to recover from the owner in action for money had and received, the sum of money paid under the contract of guarantee or under security given in respect of the agreement.
• However, the Court may on application by the hirer make an order for the return of the goods to the hirer and for the rescheduling of payments due under the agreement.               (5 marks)