Prepared by:

Mohd Hafizee Shahri

BUSINESS LAW
(ALW10103/BLW10103)
Topic 5

LAW OF HIRE-PURCHASE
 Topic Outline

Definition Parties Contents

Rights of
Repossession hirer
 Definition
Purchase of
Letting of Option to
goods by
goods purchase
installments
 Who Involved???
Owne
Hirer
r
Dealer Guaranto
(agent) r (if any)
 Contents of the HPA

Date of Number of
agreement installments

Amount of Time for

installments payment

The address
Description of
where the
goods
goods is kept
Repossession

The owner

Item
leased

Taking the
item back
 Why?????

Sec. 16

Hirer breach
HPA

Defaults in 2
Defaults in
successive
final payment
payments
 Procedure

Sec. • Notice given to hirer must NOT LESS than 21

days.
16(1) • Repossession AFTER notice period is EXPIRED.

Sec. • Serve NOTICE to hirer AFTER REPOSSESSION

WITHIN 21 DAYS.
16(3)
Sec. • Owner CANNOT SELL the goods until the
expiration of 21 DAYS.
17(1)
Rights of Hirer after Repossession

Sec. • Within 21 DAYS, require owner to redeliver

the goods with CONDITIONS or;
• SELL the goods to any person INTRODUCED by
18(1) the hirer who is prepared to buy for CASH.

Sec. • The AMOUNT due.

• REMEDIES to any breach of the agreement.
• The COST incurred in taking possession of the
19(1) goods.
 Summary
• Hire-purchase involves TWO (2) types of
transactions which are leasing and purchasing.

• If there is default in instalment, there may be

a taking back of the goods by the owner.