HIRE PURCHASE
Duties of hirer
supply of information by hirer
redelivery at termination of hiring
care of goods and repairs
payment to owner
acceotance of delivery
FORMATION OF HIRE-PURCHASE AGREEMENTS
after making the hire purchase agreement
SEC 5(3) HPA
may dispense compliance of section 3 & 4 if just and equitable to do so
SEC 4(2) HPA
7 days of receipt of insurance policy
written notice of its content
copy of the insurance
SEC 4(1) HPA
7 business days give
3rd schedule notice
copy of agreement
during making the hire purchase agreement
Tomorrow we will be more organized and prioritize every task.
SEC 5(2) HPA
if breach sec 3(3)(b)(c) & (d)
HP agreement not enforceable by owner
security given by the hirer is not enforceable by owner
owner no right to recover the goods from the hirer
SEC 3(3)(e) HPA
for consumer's benefit
prevent ower from taking advantage
remind consumer about agreed
term charges
total amount payable
insurance
vehicle registration fees
freight
deposit
cash price
in tabular form
SEC 3(3)(c) HPA
where any part of the consideration is provided other than in a cash, a description of that part of the consideration
NADHZATUL AINI BINTI MOHAMED RAFI
(08DPM12F2077)
description of goods sufficient to identify them
time of the payment which will be made
place of the payment will be made
amount of each instalment
number of instalment
Ming Lian Corporation Sdn Bhd v Haji Nordin
HELD: in absence of fraud an agreement signed in blank was valid as long as the hirer knew that he was a binding contract of HP
SEC 5(1) HPA
if not writing, not enforceable
SEC 3(3)(a) & (b) HPA agreement must be
signed by all parties including guarantor
signed by the hirer
in english
in writing
before making the hire purchase agreement
acceptance by owner concludes the making of HPA
SEC 3(2) HPA
written offer from hirer
statement sets out
summary of hirer's financial obligation
cash price of goods, other charges, interest payable by the hirer, including the effective interest rate
SEC 3(1) HPA
give written statement to hirer
NADHZATUL AINI BINTI MOHAMED RAFI - 08DPM12F2077
Terms of contract
fitness for purpose
merchantable quality
desciption
tittle
freedom from encumbrance
quiet posession
delivery
Remedies to parties
hirer's remedies
failure of performance
breach leading to total failure of consideration
renunciation
depending on the nature of breach
Distinguished from other transaction
hiring and leasing
chattel must be returned to the owner upon termination of the bailment contract
leasing
despite amount willing to pay
never sell the goods
money lending/ bill of sale
not loan backed by security bill of sale
HP not lending money transaction
contract of sale/ agreement to buy
Lee v Butler
not hire purchase agreement
SEC 25(2) SGA applied to agreement to buy that to be paid in installments
Helby v Mattews
HELD: an agreement to buy if he does not change his mind is not an agreement to buy in the eyes of law
hirer not bound to buy goods
Nature of HP
not govern by SGA until option is exercised
owner may terminate agreement if goods pass into pocession of 3rd party
hirer may not dispose of goods
contract for bailment of goods
HP Act
HP agreement comes with option to purchase
return goods at any time not obliged to pay all installments
consumer can elect to buy goods when installment specified in agreement is paid
purpose
protects seller from the situation where the buyer sells goods to bona fide 3rd party for value
liable in action for conversion by the owner
SEC 25(1) SGA doesnt apply
protect consumers who are normally in a weaker bargaining positon
if goods not in 1st schedule
common law principles will apply
SEC 2 HPA
HP agreements does not include
person hiring-engaged in the trade/ business of selling the goods of same nature/ description as the goods comprised in the agreemet
whereby the property in goods comprised there in passes at the time of agreement or upon or at any time before goods delivery
HP agreement= letting of goods with an option to purchase and an agreement for the purchase of goods by installments
covers 2nd goods as well
if comes under 1st schedule HPA
vehicle
under RTA
consumer goods
for personal/family/household
only applies to goods stated in 1st schedule
motor vehicle not exceeding $50,000 include GST/ import and exercise duty payable excludes COE
consumer goods not exceeding $20,000 include GST
