Case Study on Hire Purchase Law

Running head: CASE STUDY ON HIRE PURCHASE LAW
CASE STUDY ON HIRE PURCHASE LAW
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1CASE STUDY ON HIRE PURCHASE LAW
Introduction:
The present case study involves the following issues comprising of what are the options
available to Cyclops according the Hire Purchase Act 1967 such that there will be no breach of
the said act.
Rules:
According to section 2(1) of the Hire Purchase Act 1967, hire purchase agreement means
letting of goods with an option to purchase and an agreement for the purchase of goods by
instalments.
In the case of Arab-Malaysian Finance Bhd v Samian Bin Sabin & Anor , the court held
that in such agreement, owner is the person who has hired out goods under such agreement and
such owner has rights and duties according to the agreement or according to the provisions of
law.
Under such agreement both the hirer and owners are bound by certain rights and duties
toward each other failure of which will cause the breach of the contract. The statutory rights of
the hirer are embodied in sections 9 to 14, 15(1) and 18 of the act. The corresponding duties are
contained in section 20A mainly. The owner has also certain rights that are present in sections
16(1) and 16A mainly and duties as contained in sections 9(1)
The main duty of the hirer is to pay the installments regularly. Failure of which will make
the owner take back the possession of the goods hired as held in Tractor Malaysia Bhd v
Kumpulan Pembinaan Malaysia Sdn.Bhd. However the hirer if desired may terminate such