HIRE PURCHASE RIGHTS OF HIRER REPOSSESSION

S2(1) HPA: i. S9 right to be supplied copy of statement relating to Owner has right to recover possess of goods if hirer
i. Letting goods with the option to purchase his financial position breach his obligation under HPA.
ii. Purchased goods by installment • Amount paid to the owner by the hirer OR his agent;
• Amount due under the agreement but remains unpaid;
• Amount payable under the agreement; AND REPOSSESSION PROCEDURE
FORMATION OF HP AGREEMENT • Amount derived from the interest on overdue i. 21-days notice
i. S4A written agreement instalments. • According to 4th schedule
• Should be in writing • If hirer has 2 successive default in payment
• Must be clear, understand ii. S10 right to require the owner to appropriation of • Owner has right to send 21-days notice
• If printed size > 10 point TNR payments made in HPA • Informed intention to take repossession of goods
• Must be in national language OR english language • According to the sequence of the agreement.
ii. Repossession is allowed
ii. S4B signature of parties iii. S11 right to apply for an order from magistrate for • After expired of 21-days notice of 4th schedule
• S4B(1) : signed by OR on behalf of all parties to the goods to be remove to another place • Owner is allowed to repossess
agreement • A court of a magistrate may make an order approving • If hirer failed to pay outstanding balance
• S4B(2): document must be duly completed the removal of goods to some other place.
• S4B(3): agreement not properly signed/completed shall be iii. Owner send notice to hirer
void iv. S12 right to assign hirer’s rights, title and interest • Informed that owner has taken repossession of
under HPA goods
iii. Contents • Send 5th schedule after that
• Date v. S13 right by operation of law to have his right, title
• Number of installment and interest iv. Can sell to public auction by giving 14-days
• Amounts of each installment notice before
• Person to whom & place which payment are made vi. S14 right to early completion of agreement • If the amount due under the 5th schedule notice
• Earlier than the due date. is not paid within 21 days after notice
iv. S4D(1) separate agreement
• In respect of every item of goods purchased. Vii. S15 right to terminate agreement by returning the v. Sales take place after 14-days
goods to owner • If proceeds from sale of the car are inadequate
v. No alteration/addition to pay the outstanding amount due, owner will
recover the shortfall from hirer
vi. S5(1) service of document • Hirer need to bear the auction expenses
• Owner must serve copy of HPA to hirer OR his guarantor IMPLIED CONDITIONS
• Within 21 days after agreement is made i. Right to sell
ii. Merchantable quality
vii. Deposits iii. Fitness
• In cash OR in goods
• Not less than 1/10 of the cash price of goods
IMPLIED WARRANTY
i. Quiet possession of goods #HPA: hire purchase agreement
ii. Free from encumbrance