Malaysian Hire-Purchase Act 1967 patterned after New South Wales Hire Purchase Act. HP is part of consumer law to provide balanced protection for consumers and sellers.
Previously governed by common law ,Contracts Act & Sales of Goods Ordinance- replaced due to unfairness towards consumer hirer.
S7(1) (a) HPA- Quiet possession of goods S 7(1)(c) HPA- Goods must be free from any encumbrances or charges.
STATUTORY RIGHTS OF HIRER 1. To be supplied documents and information- s. 9 2. To require owner to appropriate payments in the HP agreements- s. 10 3. To apply to the Courts for an order for the removal of goods 4. To assign his right- s. 12
5. To have his right, title and interest passed on by operation of law- s.13 6. To complete the purchase of goods earlier than due date- s.14 7. To terminate the hiring- s.15.
LIABILITY OF OWNER & DEALER FOR MISREPRESENTATION If owner made misrepresentations during negotiation leading to HP agreement- hirer may rescind and sue for damages- s8(1)(a) HP If dealer made misrepresentation through finance company- Hirer cannot repudiate the contract but can only claim damages- s8(2) HPA