UNIVERSITI TUNKU ABDUL RAHMAN

JANUARY 2022 TRIMESTER

UKML1013/UBML1013 CORPORATE AND BUSINESS LAW

Tutorial 6: Hire-Purchase

1. Briefly state the requirements as to the formation of a hire-purchase agreement under

the Hire- Purchase Act 1967.

2. Where the hirer has defaulted in the payment of two successive hire-purchase
installments, the owner may enforce his rights under the Hire-Purchase Act to
repossess the goods.

State the restrictions imposed by the Hire-Purchase Act on the power of the owner
when recovering possession of the goods.

3. Jane is keen to start a business selling electrical sewing machines on hire-purchase.

She is aware of an Act that regulates hire-purchase transactions and she seeks your
advice on the following matters:

a) State the types of goods that are regulated by the Hire-Purchase Act 1967? Does
the Act cover the electrical sewing machines? Would your answer differ if the
customer is a tailor who would like to purchase the electrical sewing machine for
his business and not for personal usage?

b) In the event that the electrical sewing machines are second-hand goods, in what
situations would the implied terms of merchantable quality be exempted?