Describe briefly the rights as a hirer under a hirepurchase contract, the liability of owner and dealer for misrepresentation

and state the various types of goods covered by the Hire-Purchase Act 1967

Presenter :

Surian syah sura Nursyafika Md Ayup Ameer Hakim Mustafa Muhamad Izdihar Mohsin

INTRODUCTION

The law of hire-purchase is provided in the Hire-Purchase Act 1967 which came into force on 11 April 1968. Hire-Purchase is a contractual agreement where by the owner lets goods out on hire and agrees that the hirer may either return the goods out on hire and terminate the contract or elect to buy the goods on the completion of the required periods payment.

Hire-Purchase Agreement

Section 2(1) explains that hire-purchase agreement includes a letting of goods with an option to purchase and an agreement for the purchase of goods by instalments, but does not include any agreement:

Whereby the property in the goods comprised therein passes at the time the agreement or upon at any time before the delivery of the goods; or Under which the person by whom the goods are 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

The rights as a hirer under a hire-purchase contract

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Section 9 to 15 of the Hire-Purchase Act 1967 provide for the rights of hirers. The hirer has the following right: Right to a copy of statement relating to his financial position Right to appropriation of payment Right to apply for an order for goods to be removed Right to assign Right by operation of law Right to early completion of agreement Right to terminate agreement

The liability of owner and dealer for misrepresentation

If the owner made a misrepresentation in the course if negotiation leading to the hirepurchase agreement, the hirer has the right to rescind the agreement and sue for damages section 8(1)(a), Hire-Purchase Act 1967).

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If there is misrepresentation made by the owner or dealer in the negotiations leading to the Hire-Purchase Agreement, the hirer is entitled to the following remedies:As against the owner the hirer is entitled to rescind the contract As against the dealer the hirer is entitled to damages

Example Case:

On the case of LAU HEE TEAH v HARGILL ENGINEERING SDN BHD, it was held that if any fraudulent misrepresentation was made to the plaintiff by any employee of the 1st Defendant (dealer) and he was induced to enter into a hirepurchase agreement, he would have, as against the 2nd Defendant (owner) the right to rescind it under section 8(1)(a) and as against the dealer, the right of action in damages under section 8(1)(b).

Exemption Clause Any condition or term in the Hire-Purchase Agreement which excludes or limit the liability of the owner or dealer for any misrepresentation made shall be void section 8(2), Hire-Purchase Act 1967 Right of the innocent owner An innocent owner who suffers any damage as a result of the misrepresentation of the dealer is entitled to be indemnified by the dealer section 8(3), Hire-Purchase Act 1967

The various types of goods covered by the Hire-Purchase Act 1967

All consumer goods, which defined in section 2(1) of the Hire-Purchase Act as goods, purchased for personal, family or household purposes. Motor vehicles, namely
Invalid carriages Motor cycles Motor cars including taxi cabs and hire cars Goods vehicles (where the maximum laden weight does not exceed 2540 kilograms Buses including stages buses