Hire Purchase
Hire Purchase
Hire Purchase
Prepared by;
Alizah Ali
Department of Law
UITM Bandaraya Larkin
-alizah ali-
The definition of HP
Hire Purchase
or
The definition of HP
Ownership is
not transfer to
the Hirer
At the time
contract is
made
Hirer only
obtain the
possession of
the goods
The ownership will
remain with the
Owner until
payment is
complete
-alizah ali-
The definition of HP
Concept of HP
Credit Corporation (M) Sdn Bhd vs
The Malaysian Industrial Finance
Corp
-alizah ali-
owner
Sect 2(1)
HPA 1967
hirer
price
goods
-alizah ali-
goods
Consumer
goods
1st Schedule of
HPA 1967
Motor
vehicles
formation of HP
1. B4 agreement Giving 2nd Schedule Notice
2. Agreement must be in writing
formation of HP
1. Giving
2nd
Schedule Notice
-alizah ali-
formation of HP
1. Giving
2nd
Schedule Notice
Method of service
No need
to pay any
considera
tion
In person
NO ..
YES .. Sect 46
RM3000 @ 6
months
imprisonment
-alizah ali-
No
obligation
to enter
into the
contract
formation of HP
1. Giving
2nd
Schedule Notice
Contract is void
If no 2nd Schedule
Notice
Guilty Sect 46 of
HPA 1967
-alizah ali-
formation of HP
2. Agreement must be in writing
Sect 4A HPA
1967
Contract is void
If not in writing
Guilty Sect 46 of
HPA 1967
-alizah ali-
formation of HP
3. Agreement must be signed
Sect 4B HPA
1967
Guilty Sect 46 of
HPA 1967
-alizah ali-
formation of HP
Specify
4. Content of HP agreement
Sect 4C HPA
1967
oDate of agreement
oNo of installment
oAmount of each installment\time for
payment
oDescriptions of goods
oAddress where the goods placed
-alizah ali-
formation of HP
Tabular form
4. Content of HP agreement
oCash price
oDeposit price
oVehicles registration
oInsurance amount
oBalance original payable
oTotal amount payable
-alizah ali-
Sect 4C HPA
1967
formation of HP
Sect 4C HPA
1967
4. Content of HP agreement
Contract is void
If not contain
Guilty Sect 46 of
HPA 1967
-alizah ali-
formation of HP
5. Separate agreement for every item of goods
Sect 4D HPA
1967
Contract is void
If not contain
Guilty Sect 46 of
HPA 1967
-alizah ali-
formation of HP
6. Copy of agreement must be served on the Hirer
Sect 5(1)
HPA 1967
Within 14 days after making the contract
Sect 5(3)
HPA 1967
Sect 5 HPA
1967
hirer
guaran
tor
A copy of
insurance
policy
A copy of HP
agreement
-alizah ali-
formation of HP
6. Copy of agreement must be served on the Hirer
Contract is void
If not get a copy
Sect 5(1A)
HPA 1967
-alizah ali-
Sect 5 HPA
1967
owner
Mispresentation
Hirer may
Lau Hee
Teah vs
Hargill
Engineering
Sdn Bhd
-alizah ali-
dealer
Exemption
clause
Sect 8(2)
HPA 1957
Exclude, limit
& modify
-alizah ali-
Contract
is VOID
RIGHT
of
HIRER
current position
Sect 9 HP 1967
3. Right to appropriation of payment
made in HP agreement
Sect 10 HP 1967
4. Right to apply from court-to get
RIGHT
of
HIRER
DUTIES
of HIRER
Sect 37 HP 1967
-alizah ali-
installment,
or
Death Hirer
default
4 successive
-alizah ali-
-alizah ali-
procedure
19 days
United Manufacturers Sdn Bhd vs Sulaiman
Ahmad
-alizah ali-
procedure
owner
owndealer
Cont
Right Of Owner In Repos
session
procedure
-alizah ali-
procedure
After
procedure
After
2. Sect 16(3)n HPA 1967
-alizah ali-
5th Schedule
option
-alizah ali-
procedure
Complete the
agreement by
paying the
balance due
under the
agreement + cost
repossess
procedure
DO NOT take
the goods
Pay full
payment
5th Schedule
option
Cost incidental
to
repossession
-alizah ali-
Cont
procedure
If x 5th Schedule
-alizah ali-
Cont
procedure
a) cost of repossession
b) cost incidental to
repossession
a) cost of storage
-alizah ali-
Cont
procedure
If dispose without
consent
-alizah ali-
hirer
5th
schedule
(option)
-alizah ali-
-alizah ali-
-alizah ali-
Public
Sect
18(4)(a)auction
HPA 1967
Owner serve a notice to the hirer
Not less than 14 days b4 the date
Of auction
-alizah ali-
Private
auction
Sect
18(4)(b) HPA
1967
Owner give hirer an option
to buy the goods at the price
which he intends to sell