1.

Summarise any TWO (2) of the rights conferred upon a hirer

under Hire-Purchase Act 1967.

Rental Purchase is the activity of renting an item with the option to

buy it. for example you are a tenant and the company that finances the
goods is both the financier and the owner. The title will only be
transferred to the tenant as long as all theinstallments are explained. In
the meantime, you can return the item for use. All hire purchase
transactions are governed by the Hire Purchase Act 1967. Details and
conditions contained in the hire purchase agreement, legal rights,
responsibilities and duties of tenants and financiers are described in the
Hire Purchase Act. This Act is under the jurisdiction of the Ministry of
Domestic Trade and Consumer Affairs.

In the hire purchase act 1967 section 7 (1) states that the owner of
the goods has the right to sell the goods to the tenant at any time. If the
owner violates the agreement by selling the leased property within the
lease term, the tenant is entitled to a refund of the rent. Through this act
owner can get a refund if the owner of the good breach the agreement.
Examples of the case of Public Finance Bhd vs. Ehwan Bin Filing where
the court ruled that a letter of ownership should be available to the owner
as soon as the agreement is made. Transfer of ownership can only be
made after all payments have been made.

Early termination. Refer to Section 14 hire purchase 1967 the

tenant has the right to terminate his lease agreement earlier than the
stipulated period. Here the tenant must give the owner written notice of
his intention to do so and set the date. On or before that date, the tenant
shall pay all the net amount payable under the agreement and the tenant
shall be entitled to any reduction in the payment including any possible
rebates. Pursuant to Section 15 of the hire purchase Act 1967, the right
may be granted to tenants who are no longer willing or unable to
continue with the installment payment under the lease agreement. In this
case the tenant can terminate the agreement by returning the item to the
owner. When an agreement is terminated in a manner the tenant may
require the owner to sell the property to anyone at a price agreed upon
by the owner.

2. Discuss briefly any TWO (2) of the protections given by the

Bills of Exchange 1949 to the paying banker.