COMMERCIAL LAW HIRE PURCHASE Hire Purchase Act 1967

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COMMERCIAL LAW HIRE PURCHASE Hire Purchase Act 1967 by Mind Map: COMMERCIAL LAW HIRE PURCHASE Hire Purchase Act 1967

1. Requirements of Hire Purchase Agreement

1.1. In a formation of a hire purchase agreement, there are two requirements to be complied with

1.2. Section 4A of Hire Purchase Act Hire purchase agreement to be in writing

1.3. Section 4B of Hire Purchase Act Hire purchase agreement to be signed

2. Contents of Hire Purchase Agreement

2.1. Section 4C (2)

2.2. Any agreement which does not comply with this requirement would render the agreement void

2.3. Section 4C (3)

2.4. Owner enters into agreement without stating the contents, guilty of an offence under Section 46

3. SEPARATE AGREEMENT OF EVERY ITEM OF GOODS

3.1. Section 4D (1)

3.2. If there are more than one goods being hired at one time from the same owner by the same hirer, there must be separate agreements for each goods

3.3. Section 4D (2)

3.4. A hire purchase agreement that does not comply with the requirement shall be void.

4. ALTERATION OF HIRE PURCHASE AGREEMENT

4.1. Section 39

4.2. No alterations, additions, amendments made to agreement after agreement is signed by parties.

4.3. Any alterations, additions, amendments will have no effect unless the hirer has consented by signing or initiating the agreement in the margin opposite the change.

5. COPY OF DOCUMENTS TO BE SERVED

5.1. Section 5 (1)

5.2. Within 21 days after the making of the agreement, the owner must serve on the hirer and guarantors each with copy of the agreement.

5.3. Section 5 (4)

5.4. Failure of doing so be guilty of the offence under Section 46

6. DEPOSIT

6.1. Section 31 (1)

6.2. If there is no prescribed minimum deposit required of a hirer, an owner entering into a hire purchase agreement must first obtain from the hirer a deposit to a value not less than one tenth (1/10).