HIRE PURCHASE
by Nurul Najihah Ariffin
1. Procedure of Repossession
1.1. 1. Default in payment
1.2. 2. Service of the 4th schedule.
1.3. 3. Reposession
1.4. 4. Service of the 5th schedule notice and procedures after reposession.
1.5. 6. Selling on repossession by owners.
2. Definition of Reposession
2.1. The actual owner of the item that have been rented, leased or borrowed by hirer takes the item back, either with or without compensation based on agreement that they made and agrees.
3. Statutory Rights of Hirer
3.1. Section 9 Right to be supplied copy of statement relating to his financial position (documents and information).
3.2. Section 10 Right to require the owner to appropriation of payments made in hire purchase agreement.
3.3. Section 11 Right to apply for an order from Magistrate for goods to be remove to another place
3.4. Section 12 Right to assign hirer’s rights, title and interest under the hire purchase agreement.
3.5. Section 13 Right by operation of law to have his right, title and interest.
3.6. Section 14 Right to early completion of agreement complete the purchase of the goods earlier than due date.
3.7. Section 15 Right to terminate agreement by returning the goods to the owner.
3.8. Section 47 A consumer may recover for a failure of goods supplied under a hire-purchase agreement to comply with a guarantee under this Act shall be assessed.
4. Statutory Rights and Obligations to The Owner
4.1. Section 7(1)(a) An implied warranty that the hirer shall have and enjoy quiet possession of the goods. Section 7(1)(b) An implied condition on the part of the owner that he shall have a right to sell the goods at the time when the property is to pass. Section 7(1)(c) An implied warranty that the goods shall be free from any charge or encumbrance in favour of any third party at the time when the property is to pass.
4.2. Section 7(2) An implied condition that the goods shall be of merchantable quality unless the goods are second hand good.
4.3. Section 7(3) An implied condition that the goods shall be reasonably fit for particular purpose for which they are required by the hirer unless that goods are second hand goods.
5. Definition of Hire Purchase
5.1. An agreement wherein an owner agrees to hire goods to the hirer with an option for the hirer to purchase the goods.
6. Terminologies Section 2(1) of Hire Purchase Act
6.1. Owner – Person who lets or has let goods to hirer under a hire-purchase agreement.
6.2. Hirer – Person who takes or has taken goods from an owner under hire-purchase agreement.
7. Hire Purchase Act List of Goods
7.1. All consumer goods
7.2. Motor vehicles, namely: - Invalid carriages, Motorcycles, Motor cars including taxi cabs and hire cars, Good vehicles (<540 KG), Busses including stage busses.
8. Requirement of Hire Purchase Agreement
8.1. In a formation of a hire purchase agreement, there are two requirements to be complied with
8.2. Section 4A of Hire Purchase Act Hire purchase agreement to be in writing
8.3. Section 4B of Hire Purchase Act Hire purchase agreement to be signed
9. Formation of Hire Purchase Agreement
9.1. Section 4A Requires a hire purchase agreement to be in writing
9.2. Section 45 Provides a hire purchase agreement shall be in writing and printed in black
9.3. Section 4A(1A) Provides that agreement shall be in the national language
9.4. Section 4B(1) Requires a hire purchase agreement to be signed by or on behalf of all parties to the agreement.
9.5. Section 4D(1) Requires separate hire purchase agreement in respect of every item of goods purchased.
9.6. Section 4G(1) Provides that where goods to be comprised a hire purchase agreement is second hand motor vehicle.
9.7. Section 39 States that any alteration of matter added to, a hire purchase agreement, if the alteration is an alteration of any of the matters set out in the written statement or statements required to be served on the hirer pursuant to section 4(1)(a) and (b) before the hire purchase agreement was entered to, shall have no force or effect unless the hirer has consented thereto by signing or initialling in the margin opposite the alteration or addition.
9.8. Section 5(1) Provides the owner must serve a copy of the hire purchase agreement on the hire purchase agreement on the hirer and the guarantors within 21 days after making the agreement.
