Part 3 Conclusion: In concluding, we opine that bearing in mind the simple nature of this form of security, it will not be viable in Nigeria for the following reasons: Since the chattel or goods pledged are not directly under the supervision of the lender, it becomes very hard for the lender to monitor the goods or chattel and to ensure that the borrower does not in any way interfere or deal in the goods and chattels that have been used for the security. This has become evident due to the inadequacy of storage facilities which may also lead to a depreciation of the price of the goods or chattels. In many cases also, goods hypothecated are at sea on board a vessel so that the creditor is not given an opportunity of seeing the condition or doing any proper valuations. The creditor or lender may discover on arrival of the goods that they do not fit the description given when the
Part 3 Conclusion: In concluding, we opine that bearing in mind the simple nature of this form of security, it will not be viable in Nigeria for the following reasons: Since the chattel or goods pledged are not directly under the supervision of the lender, it becomes very hard for the lender to monitor the goods or chattel and to ensure that the borrower does not in any way interfere or deal in the goods and chattels that have been used for the security. This has become evident due to the inadequacy of storage facilities which may also lead to a depreciation of the price of the goods or chattels. In many cases also, goods hypothecated are at sea on board a vessel so that the creditor is not given an opportunity of seeing the condition or doing any proper valuations. The creditor or lender may discover on arrival of the goods that they do not fit the description given when the
13-hypothecation1.docx