Fourth-> BEFORE

AFTER
Fifth ->
 Dalam
sale of :

Buyer -
seller
goods monership

Hive =hiver-owner
INTRODUCTION

I
purchase
possesion

instalments
, - 1 Jan

SOURCES DEFINITION

Hire Purchase Act

S. 2(1) HPA – HP agreement includes a
1967 (HPA). LETTING of goods with an OPTION to
↳ Malaysia
Belongs to
purchase and agreement for the
purchase of goods by installments.
(whether the agreement describes
the installments a rent or hire or otherwise)
 A 13
C C
I
↑ ↑
owners niver

instalment

C RM7U R C

↑ ·
A transaction where a person acquire
goods and pays
them off by INSTALLMENTS
until full payment is made to,
title of the goods
remains with the owner despite
possession been given to the hirer.
another
 vUntil the hirer had exercised his
option to purchase by paying the
total amount and fulfilling all his
obligation under hire purchase
agreement, no property in the car
passed to the hirer.

High Court
 §GOODS GOVERNED BY HPA

The First Schedule of the HPA

All consumer goods
motor vehicles, namely
all the
transport invalid carriages,
motor cycles
motor cars including taxi cabs
and hire cars;
good vehicles;
buses
 s 2(1) ‘
consumer goods -
‘goods purchased for personal,
family and house hold purposes’.
Yousehold
any
item
S 1(2) declares that the Act applies ‘in respect only of hire
purchase agreements relating to goods
specified in the First Schedule’.

HOW ABOUT THOSE GOODS WHICH

ARE NOT SPECIFIED IN THE FIRST
SCHEDULE?

not listed
EX
Laptop
:

in Hire Purchase
 ØHPA also allow parties to agree to
be bound by the Act in respect of
those goods not ordinarily regulated.

IF
Answer :

Yes
BOTH Parties
Agree
 notted
iS

owner hirer
Agreed on sale of COMPUTER based on HPA

goods outside HPA coverage

 did not avoid
& prevent

vSection 1(2) did not exclude the

application of provisions of the Act
to hire purchase agreements in
respect of goods outside its
coverage provided the parties to an
agreement CONSENTED to be
bound by them.

Its and valid

Judge okay
:

of the
because both
with it
parties agree
at first
 qFORMATION & CONTENT OF THE HP AGREEMENT

S 4(1):

ØBefore HPA is entered into, the owner is

required to give a prospective hirer:-
before anything
should decide
happen
-
you
with the details
& subscription

A summary of the hirer’s financial

obligations
a written statement under the proposed agreement
regarding a such as the cash price of the goods,
the term charges and
description other charges
of the goods eg. insurance, freight, vehicle, registration etc.
 ØAny person who has served with
the written statements above, is
under no obligation to enter into the
hire purchase agreement and need
not pay nor give any consideration in
respect of the preparation or service
of such statements. (ITT)

The real owner cannot

to
force the hiver of quotation
preparing a

agree
to
proceed th

the transaction & purchase

& instalment

S 4(3):
ØAny person who imposes such
an obligation or requirement is
guilty of an offence.

S 4(6):
 §WRITTEN AGREEMENT

ØS 4A(3) the
ØS 4A(1): ØS 4A(2): a HP
owner shall be
requires HP agreement which is
guilty of an
agreement to be not in writing shall
offence under
IN WRITING be VOID
the Act
must i nee
be

I
will be GUILTY !
all the parties related
§SIGNATURES OF PARTIES

•S 4B(1) – HP
agreement to be
agent
signed by or on the

behalf of all the

parties to the
agreement
 BLANK DOCUMENT -me

•S 4B(2) – HP
agreement or other
forms must be duly
•S 4B(3) – an
completed before the
agreement that does •S 4B(4) – an
intending hirer or his
NOT COMPLY with owner, dealer,
agent is required to
subsections (1) & agent or person
sign thereon, signing of
(2) is VOID. acting on behalf
BLANK FORMS by a
of the owner who
hirer is against the Act ↓terbatol CONTRAVENES
↓read tra any of the
detail provisions is
Hiver have
a
GUILTY of an
DENY ! offence.
rights
to

- once you
signed
the
bound
have
you
 A hire-purchase
agreement that
1. a DATE on
CONTRAVENES any of
which the 7. The
the requirements is VOID
hiring starts ADDRESS
and the owner who enters
into such an agreement is where the goods
GUILTY of an offence are kept
2. The NUMBER OF
INSTALLMENTS to
be paid by the hirer 6. A
§CONTENTS DESCRIPTION
OF THE
3. The S. 4 C(1): GOODS
AMOUNTS of sufficient to
each of the identify them
installments and 4. Vehicle
registration 5. The TIME
the person to
fees, if FOR THE
whom and the
applicable PAYMENT of
place at which
each of the
the payments
installments
are to be made
 1. The cash price of 10. The total amount
the goods 9. The total
payable
amount in items
6 and 7
2. The deposit
showing
separately the 8. The annual
Hire-purchase
amount paid in percentage rate
agreement
cash and the for term charges
must
amount provided provide a
by consideration table containing
other than cash 7. Term
charges
3. Delivery of
freight charges,
if any 6. The total amount
5. Insurance referred to above
less the deposit
4. Vehicle
registration fees, if
applicable
 §SEPARATE AGREEMENT
↳ cannot /ump sump all

ØS. 4 D (1) - Where unement

canbre Any
more than one item
of goods is
purchased, there ØS. 4 D (4) - Any
must be a separate goods which are
hire-purchase essentially similar
agreement in respect or complementary
of every item to each other and
sold as a set are
regarded as an item
ØS. 4 (D)(2) & (3) - A
contravention of this
requirement renders
the agreement void
and the owner guilty
of an offence
 SERVICE OF DOCUMENTS
must
-

owner
a

prepare
tation
que

S. 5(1) - the owner -

Liver
agree S. 5 (4) - failure
prep we

to comply – shall
a

must serve the hirer t ble

and the guarantors a -after

signed
be guilty of an
the
agreement
copy of the hire- days
21

offence against
-within
owner
the

purchase agreement shouldpref

sawe

WITHIN 21 DAYS after

to the
memorandum" the Act
hiwer

"The
it is made

S 5(2) - At any time b4 FINAL PAYMENT

has been made under the agreement, the
owner must within 21 days upon a
request in writing from the hirer, supply
to the hirer a copy of any memorandum
or note of the agreement
 §Right to copy §Right to terminate
of statement of agreement if not able
§Right in the
current position: to pay: S15
event of
S. 9 repossession
of the goods
by
§Right to owner:S16
qSTATUTORY RIGHTS OF HIRER
appropriate
payments: S 10 (Part IV of the Act)
Provisions SS 9 – 15 HPA 1967
§Right to apply
for an order for §Right to
goods to be early
moved: S11 §Right to pass
completion
title/rights
of the
§Rights to assign by operation of law
agreement:
rights to someone – on
§S14
else under the death/bankruptcy:
agreement: 12 S13
 §1.RIGHT TO COPY OF STATEMENT OF
CURRENT POSITION
ask the owner to prepare

ØS 9: At any time b4 the final payment, a

d. the amount
hirer is entitled to request the owner for derived from
§S. 9
a written statement pertaining interest on
to the following information: overdue
installments

a. the b. the amount c. the amount

amount paid which has which is to
to the owner become due become payable
on behalf of
the hirer
 ØH/ever this right can only be
exercised not more than once in
three months ↳Dont burden the owner

ØIf the hirer makes such requests

more than once in 3 months, the
owner can refuse to comply.

ØUsually, the hirer has a right to

be supplied within 14 days a
statement by the owner.
 ØIf the owner fails to comply without reasonable
fuil
hiver
if the
-

the instalment
cause and so
to
pay
time
on
long as such defaults continues,
-
the cant
owner
the owner cannot enforce;
she

the niver

the owner
because
-

to take
have no
rights
action

-because the owner

did not prepair with
the not requested by hiver ii. exercise any
i. the agreement against the hirer right to recover the
or; goods from the
hirer
ØS. 9(2) & (3) - If the default
continues for a period of one
month, the owner shall be
guilty of an offence and be
liable to a fine not exceeding
RM1000
 §2. RIGHT TO REQUIRE THE OWNER TO APPROPRIATE
PAYMENTS MADE IN HIRE-PURCHASE
(WHEN MORE THAN ONE AGREEMENT IS ENTERED): S 10

boleh minta
consider the
↑ payment
ØA hirer has a right to ØThe hirer can
appropriate where he direct payment to a
has more than one particular
agreement, and agreement or
payment is insufficient payment to any 2
to discharge the total or more
amount due agreements in such
proportion as he
thinks fit
RM200 (per month) RM150 RM150

I need RM500 to settle all

the items but I got only
RM300…
§3. RIGHT TO APPLY FOR AN ORDER
FOR GOODS TO BE MOVED

ØS 11 – confers a right on
the hirer to apply to a
magistrate for an order
permitting him to move the
goods.

↳owner does not

bother
really care

↳ janji settleban
payment /
instalment
§4. ASSIGN RIGHTS TO SOMEONE ELSE
UNDER THE AGREEMENT

ØS 12(1) – the right, title & interest

of a hirer under a hire purchase
agreement may be assigned with
the consent, if the consent
unreasonably withheld, may be
waived.
ignun ee
I after few
years
I not interested
hiver found
any parties
to continue .
 5. BY OPERATION OF LAW

S 13 – the right, title & interest of a

hirer under a hp agreement can
pass by operation of law to the
personal representative of the hirer.

.
ØOccurs on the death or bankruptcy of
the hirer.

family members

should continue
§ (6)Early completion of the agreement

ØS 14(1) – hirer needs to give

written notice to the owner

!
indicating his intention.

to
written
runer
notice the
inform
r
uk bay
Full
:

Ex
§7.TERMINATE AGREEMENT IF NOT ABLE TO PAY

ØS 15(1) – can terminate at any

time by returning the goods to the
owner.
to
its better
return daripada
Reposession take back the goods
ØGenerally, goods should be
returned during the ordinary
business hours at the place at
which the owner ordinarily carries
on business.
§8. REPOSSESSION BY THE OWNER

REPOSSESSION???

Øoccurs when there is default by

the hirer i.e non-payment of
installments
Ø s 16 – 20 HPA detail provisions
setting out the rights & obligations
of both hirer & owner in the event
of repossession of the goods.
When a hirer breaches a hire-
purchase agreement relating to
payment of installments of
sums of money, the owner may
take possession of the goods
if he complies with S 16(1) HPA
1967.
 (ii) 2 successive bethrut-
(i)Payment of turnt
installments amount defaults of continuous

to not more than payments

75% of the total cash
price of the goods i) Jan (x), Feb(x) - CONSECUTIVELY
ii) Jan(x), Feb( /) Mac (x) =tal continuous
cannot
requirement so

REPOSSES

Total price: RM100k S 16(1) – Owner shall not

Paid: 50k exercise any power
<75 %
of taking possession
can reposses
of goods unless
notice after sending notice
↑
(iii) Owner has served -> stute (iv) period of 21
on the hirer a notice that they're to
days which is
going
in writing in the form R EPOSSES
fixed by notice
set out in the Fourth - state a date has expired
notice to
short
Schedule Reposses
-

Sebab ada
scammer
What happen if owner did not comply
With Notice Under S 16(1) HPA 1967

->
to protect
ØHirer can use reasonable
force to oust such persons from
his place/house.
vThe date specified was short
of 2 days for the statutory
minimum number of days.

vThe notice was bad in law

even if served & its effect was
therefore null & void.
 You failed to pay
monthly installment!

But u didn’t give prior

notice of 4th Schedule,
to
will kill u if u take the - has a
right
the
property!!! protest
hiver holding

O
Owner's action was invalid
as contrary to S 16(1) &
hirer had a right to use
reasonable force to protect
the goods.
S16(1A): If hirer had paid installments
Po
more than 75% of total cash price &
he failed to pay 2 successive months
CC

installments - owner cannot re-

.

possess unless he obtained court’s

order.

S 16(1B): if owner had obtained

court’s order & served Fourth
Schedule Notice in writing to hirer, the
period fixed by notice had expired (ie
21 days) – owner can re-possess
 dunia
mening al
If the hirer is a deceased?
-
af fer the death
to to
pass fumily
settle down

S 16(1C) - Owner cannot

re-possess unless there
has been four successive
defaults of payments.
Rational – to give time for
deceased’s relatives to
settle deceased estates.
 Øowner need not comply
with subsection (1) if there
are reasonable grounds for
believing that the goods will
be removed or concealed.
-
have a
feelings
that the hiver

will do something bad

S 16(2)
 Øwithin 21 days after the owner -> cannot keep
has taken possession, he shall silent after

R EPOSSESION
serve to hirer & every guarantor, send
kena
a notice in writing, in the form notice
b done

set out in the Fifth Schedule. by

the owner

hiver
to the

S 16(3)
 §S 16(6): If the owner did not
comply With Notice Under S
16(3) HPA 1967?

Øowner’s right under hire-purchase

claim
agreement cease, cannot

any rights
Øbut if hirer exercises his rights to the owner lost
recover the goods so taken
-

the Hire purchase

possession of, the agreement has
the same force & effect in relation to
the rights & liabilities of the owner &
hirer as if the notice had been duly
given.
 S16(4) - where the owner take possession –
he must deliver to the hirer personally, a
document acknowledging receipt of the
goods.

S16(5) – the document acknowledging

receipt of goods must contain short
description of the goods, date, time &
place where repossession is made.
: the
yang REPOSSES
owner

should be responsible

Hirer who returns goods within 21 days after

the service on him of the notice set out in the
Fourth Schedule shall not be liable to pay

(a) the cost of (b) the cost c) the cost of

possession incidental to storage
Hiver tak kesah
taking
yah
possession;
and
 HIRER’S RIGHTS & IMMUNITIES
WHEN GOODS REPOSSESSED
S 18(1)

ØWhere the owner takes possession under S 16 –

1days after the service on him

of notice under S 16(3), by
giving to the owner a notice in
(ii) require the owner to sell the
writing signed by the hirer or
goods to any person introduced by
his agent
the hirer who is
prepared to buy

FieEntering for cash,

not less than the estimated value
(i)
↑ FIRST
of the goods set out in the
require the owner to re-deliver the goods first mentioned notice.
 <same as Sale OF G00DS)

CONDITIONS & WARRANTIES – SECTION 7(1)

(b) an implied c) an implied

(a) implied
condition - the warranty -
warranty -
owner have a goods shall be
enjoy
right to sell free from
quiet
the goods
possession of any charge or
the goods encumbrance
in favour of
any third party
 CONDITIONS & WARRANTIES – SECTION 7(2)

implied
condition - goods shall be of merchantable
quality

EXCEPTION:

(b) second-hand
(a) hirer has goods
examined the goods/
sample ↳ cant expect banyak
- Must have detect
the defects
examination