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BUSINESS LAW 1) Explain a hire purchase agreement and describe the two parties involved in the hire purchase

se agreement. Section 2(1) of the Hire Purchase Agreement 1967 contains a definition of the words hire purchase agreement as including a letting of goods with an option to purchase, and an agreement for the purpose of goods by instalment ( whether the agreement describes the instalments as rent or hire or otherwise), but does not include agreement : Whereby the property in the goods comprised therein passes at the time of the agreement or upon or at any time before delivery of the goods, or Under which the person by whom the goods are being hired or purchased is a person who is engaged in the trade or business of selling goods of the same nature, or description as the goods comprised in the agreement. In the case of Credit Corporation(M) Bhd v The Malaysian Industrial Finance Corporation & Anor Court held - that no property in the goods passes to the hirer until the hirer has exercised his option to purchase by paying the full amount and fulfilling all his obligation under the hire purchase agreement. In other words, in a hire purchase agreement situation, the hirer is not the owner of the goods although he possessed the goods. A hire purchase agreement must be in writing; Section 6(1) of the Hire Purchase Act 1967. The two parties to a hire purchase agreement are the hirer and the owner. A hirer is a person who takes or has taken goods from an owner under a hire purchase agreement and includes a person to whom the hirers rights or liabilities under the agreement have passed by assignment or by operation of law. The owner is a person who lets goods to a hirer under a hire purchase agreement and includes a person to whom the owners rights or liabilities under the agreement have passed by assignment or by operation of law.

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BUSINESS LAW 2) On 1st February 2011, Mustafa entered into a Hire Purchase Agreement with Bank Kaya Raya for the purchase of a car from Kereta Laju Company. The agreement stipulates that Mustafa must pay an instalment of RM800.00 each for the month for the duration of 9 years. His inability to comply with his will cause the bank to commence repossession proceedings. In May 2011, Mustafa lost his job which was only source of income he failed to make the monthly instalment starting from JUNE 2011. On 1st September 2011, Mustafa received a notice from the bank asking him to pay the outstanding amount owed or they will repossess the car. On 20th September 2011 Jumaat, a tow truck operate came to Mustafas house with the retention of taking back the car. Mustafa refused to allow Jumaat to do so as he claimed that such repossession was against the law. Jumaat took the car anyway From the facts above, discuss the following: I. Discuss the legality of the repossession process The procedure for the actual repossession is regulated under the Hire Purchase Regulations 1976 and its follows. Before Bank Kaya Raya as the owner, can take possession of the goods as outlined in the hire purchase agreement, notice must give to the hirer which is Mustafa names as well as the address of the owner to which belong. The period fixed by notice must have expired and this must not be less than 21 days. Along the period, hirers need to settle all the money arrears to prevent repossession happen. If hirers fail to pay, the owner will send Jumaat as a tow truck operates came with intention of taking back the goods. After the owner has already taken possession of the goods, the owner will then be required to personally deliver a document to the hirer who will include the date, the place and a short description of the goods that were repossessed. Under Section 16 will be served to the hirer to the hirer and all the guarantors of the hirer within 21 days following the repossession of the goods by the owner and the owner cannot sell or dispose of the goods without the written consent of the hirer until the expiration of 21 days after the date of service of the said notice. The hirers rights and immunities when goods are repossessed under Section 18, , Hire Purchase Act 1967 Hirer can regain possession of the goods in certain circumstances under Section 19, Hire Purchase Act 1967

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BUSINESS LAW II. Explain and illustrate the proper procedure to be followed for a valid repossession process. The procedure for the actual repossession is regulated under the Hire Purchase Regulations 1976 and its follows. From the above fact, Bank Kaya Raya as the owner must give the demand notice to Mustafa as a hirer when goods are to be repossessed. Its because both of them are entered into a Hire Purchase Agreement. Under Section 16, said that before the owner repossessed the goods, the notice must be given first. The agreement stipulates that Mustafa must pay an instalment of RM800.00 each month for the duration of 9 years. But in May 2011, Mustafa lost his job and he failed to make the monthly instalment starting from June 2011. Bank Kaya Raya sends a demand notice on 1st September 2011 asking him to pay the outstanding amount or they will repossess the car but at 20th September 2011, the agent of Bank Kaya Raya, Jumaat a tow truck operator came to with the intention to taking back the car. It is illustrated under the case of Pang Brothers Motors Sdn Bhd v Lee Aik Seng. A car was taken by the respondent on hire- purchase with the appellant. The respondent failed to pay the instalments due and the appellant issued a notice under Section 16(1). The issue was whether the notice was in fact served. Under this section, clearly specifies that the period before which the seizure can take place shall be not less than 21 days after the service of the notice. However the date specified in the notice was two days of the statutory minimum and the notice was therefore bad in law even if served and its effect was therefore null and avoid. Therefore, the action that Bank Rakyat was illegal because the demand notice still not lapsed because under Section 16, the period fixed by the notice must have expires and this must not be less than 21 days.

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BUSINESS LAW 3) Provide the list of goods that can be the subject matter of a hire purchase agreement. All types of consumer products Motor vehicles that include: o o o o Motorcycles Goods vehicle where the maximum permissible laden weight does not exceed that of 2540 kilograms Invalid carriages Motor cars that include taxi cabs and hire cars as well as buses which include stage buses 4) Describe in detail the statutory rights of Hirer To be supplied documents and information- Section 9, Hire Purchase Act 1967 The amount paid to the owner by the hirer or his agent The amount which has become due under the agreement bur remained unpaid The amount which is to become payable under the agreement The amount derived from interest on overdue instalments To require the owner to appropriate payments made in the hire-purchase agreements Section 10, Hire Purchase 1967, when there is more than one hire-purchase agreement entered into by the hirer with the owner To apply to the Magistrates Court for an order approving the removal of the goods to another place - Section 11, Hire Purchase 1967 To assign his right, title, and interest under the hire-purchase agreement - Section 12 To have his right, title and interest passed on by operation of law - Section 13 To complete the purchase of the goods earlier than due date -Section 14To terminate the hiring - Section 15, the hirer can determine the hiring by returning the goods.

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