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Tutorial Quests & Answer Scheme-Hire Purchase

Langsaikan Bank can lawfully repossess the car from Zainab for failing to make monthly installment payments from September to November 2018 under the hire-purchase agreement. The bank must follow the legal procedures for repossession outlined in sections 16-19 of the Hire Purchase Act 1967, which include serving proper notice before repossession. Rayyan must ensure any hire-purchase agreement to purchase a Ferrari meets the legal requirements - it must be in writing, signed by both parties, state the payment terms and other key details. Failure to do so could invalidate the agreement. BBCB Bank can repossess the car from Aman for missed installment payments in early 2016 if it follows the correct legal process,

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NUR AINA NAJEEHAH RUSHDAN
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558 views

Tutorial Quests & Answer Scheme-Hire Purchase

Langsaikan Bank can lawfully repossess the car from Zainab for failing to make monthly installment payments from September to November 2018 under the hire-purchase agreement. The bank must follow the legal procedures for repossession outlined in sections 16-19 of the Hire Purchase Act 1967, which include serving proper notice before repossession. Rayyan must ensure any hire-purchase agreement to purchase a Ferrari meets the legal requirements - it must be in writing, signed by both parties, state the payment terms and other key details. Failure to do so could invalidate the agreement. BBCB Bank can repossess the car from Aman for missed installment payments in early 2016 if it follows the correct legal process,

Uploaded by

NUR AINA NAJEEHAH RUSHDAN
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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TOPIC : HIRE-PUCHASE

1. JUNE 2019
Bella is interested in buying electrical goods from Syarikat Hen Hen. After
calculating the price, Bella realized that she did not have enough money to pay for
the goods in cash. The employee of the company told her that the purchase could
be done through a hire-purchase agreement. Bella is clueless about hire-purchase
agreements and comes to you for advice. Advise Bella on the legal procedures
required for the formation of a hire-purchase agreement. (25 marks)

-formation & formalities of HP agreement

2. DEC 2018
Zainab bought a car under a hire purchase agreement with Langsaikan Bank in
July 2018. However, Zainab failed to pay the monthly instalments from September
to November 2018. Langsaikan Bank wants to know whether they can repossess
the car from Zainab and the procedures for a valid repossession. Advise
Langsaikan Bank. (25 marks)

-default in payment
-rights of the hirer on reposession; s.16-s.19

3. JUNE 2018
Rayyan wishes to purchase a new Ferrari. However, he does not have enough
funds and wishes to purchase the said Ferrari under a hire purchase transaction.
He comes to you for advise on how a valid hire purchase agreement is
made.Advise Rayyan. (25 marks)

-formation & formalities of HP agreement

4. JAN 2018
Aman bought a second hand car from BBCB Bank under a hire purchase
agreement in July 2015. However, Aman failed to pay the installments for the
months of January to March 2016. BBCB Bank wants to know whether they can
repossess the car from Aman and the procedures for a lawful repossession. Advise
BBCB Bank. (25 marks)

-default in payment
-rights of the hirer on reposession; s.16-s.19
5. DEC 2016
a) Explain the provisions on implied conditions under the Hire-Purchase Act
1967. (10 marks)
-Part III of HPA
-right to sell, s.7(1)(b) + cases
- merchantable quality, s.7(2)
-fitness for purpose, s.7(3)

b) Amri, a businessman, took possession of a new Proton Saga under a hire-


purchase agreement with Bank Kayap. The total hire-purchase price of the
vehicle was RM60,000. Amri paid a deposit of RM15,000 with the balance to be
paid by monthly installments of RM1 ,000 starting from January 2015. Amri
paid the installments as and when due until December 2015. Due to a
downturn in business, Amri has been unable to pay the installments. After two
successive defaults, a Fourth Schedule notice was issued to him. Amri comes
to you for advice. Advise Amri on all possible solutions for his problem under
the Hire-purchase Act 1967 and include a brief description of the procedures
and legal consequences of each solution. (15 marks)

-obligation of hirer to pay instalments


-fail to do so, the hirer has right to reposses, s.16-19 HPA
-steps for reposses

6. JUNE 2016
a) In June 2015, Shahrin went to Bank Pelupa to enter into a hire-purchase
agreement.Shahrin realized that there was a mistake in the amount of the
purchase price in the said agreement. When Shahrin asked the bank officer
about this, Shahrin was told to sign the hire-purchase agreement first before
the amendments were made. Shahrin refused to sign. The officer informed him
that he will be sued by Bank Pelupa if he refused to proceed with the hire-
purchase agreement. Advise Shahrin. (15 marks)

-formation & formalities of HP agreement


-contents of the HPA
-alteration of HPA
-effect of signing the said HPA

b) Describe FOUR (4) statutory rights of a hirer as laid down in the Hire Purchase
Act 1967. (10 marks)

-s.9(1); statement relating to financial account


-s.10; appropriation of payment
-s.15(1); terminate the agreement
-s.16-19; repossessions
-other 4 rights (choose only 4)

7. DEC 2015
a) Rosila bought a Philips Air Fryer from Sesumpah Electrical Shop under a hire
purchase agreement on a monthly instalment of RM55. After using it for two (2)
months Sesumpah Electrical Shop failed to supply her with any document
regarding the amount which she has paid and she did not even receive a copy of
the hire purchase agreement. The situation became worse after three (3) months
when the Philips Air Fryer became unfit to be used. Rosila is very upset and
decides to bring the case to the court.Advise her and support your answer with
the relevant statutory provisions from the Hire Purchase Act 1967. (15 marks)

-formalities of HP agreement
-contents of the HPA
-service of HPA/documents
-effect of non-service of the said HPA

b) Explain the liabilities of owners and dealers for misrepresentation. (10 marks)

-s.8(1)(a); misrep by the owner-the hirer has the right to rescind the agreement +
sue for damages
-s.8(1)(b); misrep by the dealer-the hirer cannot repudiate the agreement but can
only sue for damages

8. JUNE 2015
Wan, a businessman, took possession of a new car under a hire-purchase
agreement with Kampung Finance Bhd. The total hire-purchase price of the
vehicle was RM96, 000. Due to a downturn in business, Wan has been unable to
pay two successive installments. Advise Kampung Finance on the procedures of
repossession under the Hire-Purchase Act 1967. (25 marks)

-obligation of hirer to pay instalments


-fail to do so, the hirer has right to reposses, s.16-19 HPA
-steps for reposses

9. DEC 2014
Nuril wishes to purchase a new car, Toyota Prius. She wants to know the
protection available for hirers and guarantors of a hire purchase agreement. She
also wants to know her rights if there is any misrepresentation made by the owner
or dealer in negotiations leading to the hire purchase agreement. Advise Nuril. (25
marks)

a. protection
-Part III of HPA
-3 implied conditions
-2 implied warranties

b. rights of the hirer-owner/dealer


-s.8(1)(a); misrep by the owner-the hirer has the right to rescind the agreement +
sue for damages
-s.8(1)(b); misrep by the dealer-the hirer cannot repudiate the agreement but can
only sue for damages

10. JUNE 2014


Eha went to Mudah Electric Shop (MES) and decided to purchase a microwave
oven, a washing machine and a refrigerator for her new house. In order to finance
these three goods, she applied for financial assistance from Hong Kong Bank
(HKB). On February 201 3, she went to HKB to execute the hire purchase
agreement. She was asked to sign three separate agreements but all the three
agreements did not state monthly payments, the term charges and the number of
instalments. She was told by an officer of HKB that such details will be filled in
later and she should sign first. HKB promised that they will send a copy of the hire
purchase agreements within two weeks after the date of the execution. Four weeks
have passed since she signed the agreements, but she has not received any copy of
the hire purchase agreement from HKB did. Eha comes to see you and wanted to
know whether the hire purchase agreements that she signed with HKB were valid.
Advise Eha. (25 marks)

-formation & formalities of HP agreement


-contents of the HPA
-HPA should be signed by all parties
-signing of blank/no details of HPA; should be completed before signing
-effect of signing the said HPA
-service of HPA/documents
-effect of non-service of the said HPA

11. DEC 2013


Fahman entered into a hire purchase agreement with Cepat Bank for the purchase
of a car on 1 March 2010. In April 2012, he suffered financial difficulties and due
to that, he could not pay the instalments for April, May and June 2012. On 1 July
2012, Fahman received a notice of intention to repossess from Cepat Bank
demanding payment within 20 days failing which the car will be repossessed. On
19 July 2012, Cepat Bank instructed one of their agents, Kamil, to repossess the car.
Kamil went to Fahman's house to take the car but Fahman refused to cooperate.
An argument ensued between them and Kamil became very angry. He hit Fahman
and snatched the car keys from him. He then drove away with the car. The next
day, Fahman went to the office of the finance company and demanded the return
of the car. He also insisted that the company pay him damages for the injuries he
had suffered. The company refused to entertain Fahman's demands and told him
to settle the arrears immediately or the car will be auctioned off. Advise Fahman.
(25 marks)

-obligation of hirer to pay instalments


-fail to do so, the hirer has right to reposses, s.16-19 HPA
-steps for reposses
-discuss further on the time & defect of the notice; it should be 21 days’ notice
-the effect of non-compliance

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