Hire-purchase

Group 12

a) Halim wishes to buy a new Honda Car priced at RM80, 000. He does
not have enough cash and thinks of buying the car from CVB Car
Enterprise through monthly instalments. What is the nature/type of
agreement in this case? Who are the parties involved in the proposed
agreement? State the formalities that need to be complied with in this
transaction and explain the consequences of non-compliance.

b) Farah planned to buy a fridge from Syarikat Maju Jaya on hire

purchase. She was told verbally she has to pay RM100/- a month for 6
years. A week after that she changed her mind and not to proceed with
the purchase. Syarikat Maju Jaya claimed that she has breached the
contract. Advise farah.

Group 13

a) Describe the statutory rights of a hirer under the Hire-Purchase Act 1967.

b) Ali went to Baba’s second-hand car shop to buy a car for his daughter. Ali
was interested in a green Proton Wira. Baba told Ali that the car was a 1999
model. Ali bought the car which was finance by Bank Chock. Ali then
discovered that the car was actually a 1989 model.

Advise Ali on the legal action he can take against Baba and Bank Chock.

Group 14.

a) Habibah hired a care under hire purchase agreement on 20th October

2017. On 3rd January 2018, Habibah lost her job and was in financial difficulty
to settle the instalments. She was worried that she might lose her car to the
bank in that month. She came to you for advice on the repossession process.

b) On 1st November 2010, Hairi had entered into a hire-purchase agreement

with Elana Bhd to buy a motorcycle. The agreement was for 24 instalments.

However due to bad strategic planning, his business suffered a massive lost
and he no longer can continue the hire-purchase agreement. Up to 1st April
2011, he had defaulted two successive payments. On 4th of April 2011, Elana
Bhd sent a 4th Schedule Notice to Hairi.
When there was no action taken by Hairi, on 11 th May 2011, Elana Bhd made
the repossession. Three days after that, Hairi wrote to Elana, requiring the
company to redeliver the goods back and he was willing to pay the all the cost
incidental to repossession and the defaulted instalments. However Elana
refused as she wished to sell the goods to someone else.

Advise Hairi.