Application of Hire Purchase Law

The assignment provides an analysis of two legal issues related to hire purchase agreements. The first issue involves whether Cyclops' rights have been violated under the Hire Purchase Act, while the second issue concerns the possibility of cancelling the HP agreement. The document applies relevant sections of the Hire Purchase Act, including Sec 2, Sec 4A(1), and S.4B(2A).

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Hire Purchase Law
Name:
Course
Professor’s name
University name
City, State
Date of submission

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Q1
Identification of the issue
Has Cyclops right under the hire purchase agreement been violated?
Explanation of the law Relating to the Issue
Based on Sec 2 of the hire purchase Act, Sec 4A (1) provides a clause on protection and
guarantee provided to the customer upon the acquisition of the good. Section 4(1A) of 1967 A
hire purchase agreement should be in writing and the contents of the agreement agreed upon.
Conditions and warrantees are supposed to be implied in every hire-purchase agreement. The
section as a right should have the liability of the owner and the person who is acting on behalf of
the owner for misrepresentation (Nasser Hamid., 2008).
Application of the law
Cyclops rights in this case include, the duty of the seller to give information and supply
documentation. When he wanted to buy the car, he was told that the car was in good condition,
had improved fuel consumption and reduced levels of noise and vibration. After a month, he
realized that fuel consumption for the Perodia Axia increased each week.
Conclusion
Under the Act, a hire –purchase agreement that pursuant to the law contravenes subsection (1)
shall be void, the seller shall be guilty of an offense under the Act(Salleh Buang., 2001).

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Q2
Identification if the issue
Can Cyclops get legal redress in cancellation of the HP agreement?
Explanation of the law Relating to the Issue
Besides that, under S.4B(2A), the agreement which is not duly completed cannot be
deliver .Hence, the agreement deemed as void once it’s not signed, duly completed under
S.4B(3).
Application of the law
Cyclops no longer wants the car. However, legally he is under a hire purchase agreement which
is a contact binding to both Cyclops and the seller. The law is legally binding. However, under
the agreement the terms and conditions and the rights of the seller cannot be changed. Besides
this, HP Act S.4B(2A) states that an agreement that is not duly finished ofr completed should not
be delivered. If its not signed it is deemed as void under S.4B(3) of HP Act of 1967. If the
vehicle was good then he can take back the car and negotiate other terms with the seller but
under a gentle man’s agreement. The seller is not obligated to take back the car.
Conclusion
Cyclops can sell the car from a practical side to another person, clear the higher purchase
agreement then buy the car of his will(Towards a compulsory purchase code, 2004). On a legal

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side, Cyclops is under no obligation to take back the car as it is in good shape and is not
defective.
References
Nasser Hamid. (2008). Hire purchase. Subang Indah, Petaling Jaya, Selangor, Malaysia: Gavel
Publications.
Salleh Buang. (2001). Malaysian law on hire purchase. Petaling Jaya, Selangor, Malaysia: Sweet
& Maxwell Asia.
Towards a compulsory purchase code. (2004). London: Stationery Office.