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Duties of Hirer

Under Hire Purchase

Presented by:

Afiq Zainal
Ozier Z. Khan
Haiqal Zarouq Khan
Section 2 of Hire Purchase Act

Hirer :

The 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
Rights of the Hirer
Obligations and Duties of The

1. Acceptance of the Delivery

2. Duty of care
3. Payment of instalments
4. Re-delivery of goods
5. Duty not to sell Goods
6. Duty not to act inconsistent with owners rights
Your Rights as a Hirer
1. To receive a copy of the hire purchase (HP) agreement.

1. To obtain any information regarding the account.

1. To request a statement of outstanding balance (once every 3


1. To settle early the full outstanding amount.

1. To terminate the agreement at any time.

Responsibilities as Hirer
Read all the fine print in the written Keep all documents pertaining to the HP
agreement. financing such as agreement, receipts, etc. in a
safe place.
Check that the purchase price and HP
terms in the agreement are as agreed. Not to remove, sell or dispose off the motor
Do not sign blank or incomplete vehicle without the consent of your banking
agreement/ forms. institution.

Can afford the instalment payments for Inform your banking institution of any change
the duration. of address.

Know rights and obligations so that you Insure the purchase after the first year and to
do not commit any actions leading to a update your banking institution within 14 days
breach. before the current policy expires.
Case: Credit Corp. (M) Bhd v Industrial
Finance Corp & others

The High Court decided that the agreement between the plaintiff and the first tenants
are subject to hire purchase and Hire Purchase Act 1967. Therefore, the ownership of
the car will not move to the tenant until he made the choice to buy a car that is by
paying all the instalments set and comply regulation hire purchase agreement.