When it comes to a hire purchase agreement, an early termination clause is often included to protect both the buyer and the seller. This clause outlines the consequences of terminating the agreement before its scheduled end date. However, there are certain provisions that would render the clause void if included in the agreement.

Firstly, any provision that allows the seller to retain all payments made by the buyer in case of early termination would be considered void. This is because it would be unfair to the buyer, who may have already made significant payments towards the purchase but is not able to complete the agreement.

Secondly, any provision that allows the seller to repossess the purchased item without giving the buyer a reasonable opportunity to pay off the remainder of the agreement would also be void. Such a provision would be deemed unreasonable and could be challenged in court.

Thirdly, any provision that allows the seller to charge excessive fees or penalties for early termination would also be void. The fees and penalties must be reasonable and proportional to the loss incurred by the seller as a result of early termination.

Finally, any provision that requires the buyer to pay the full balance of the agreement in case of early termination would also be void. This would be unfair to the buyer, who may have already made significant payments towards the purchase. Instead, the buyer should only be required to pay a reasonable amount that reflects the seller`s loss as a result of early termination.

In summary, any provision in an early termination clause that is deemed unfair or unreasonable would be considered void. The clause should be structured to protect both the buyer and the seller, while also being fair and reasonable to both parties. It is important to consult with legal professionals experienced in this area to ensure that the agreement is structured correctly and fairly.