Law of Hire Purchase Malaysia

The ownership of goods under hire purchase agreement belongs to the _____________

• seller

• purchaser

• seller and purchaser

• purchaser and financial institution

What is a hire purchase agreement or contract?

• A hire purchase agreement is an agreemnet between a hire person and an average person

• A hire purchase agreement is an agreement between an owner and a hirer

• A hire purchase agreement is an agreement between two people who are friends

• A hire purchase agreement is an agreement between companies

When the hirer makes default in paying the installment the owner has

• The right to take repossession of the asset

• No right to take repossession

• The option to reposses the assets

• He has to approach the court

Under which of the following circumstances will the asset of hire purchase legally belong to the purchaser?

• When the deposit is paid

• When the hire purchase agreement is signed

• When the first instalment is paid

• When the final instalment is paid

Hire-purchase involves TWO (2) types of transactions which are

• leasing and purchasing

• buying and selling

• leasing and selling

• selling and purchasing

Owner

• a person who lets or has lets goods to a hirer under a hire purchase agreement

• the person who takes or has taken goods from an owner under a hire purchase agreement

• a person who acted on behalf of an owner

• the person who interested to buy the goods

Hirer

• a person who lets or has lets goods to a hirer under a hire purchase agreement

• the person who takes or has taken goods from an owner under a hire purchase agreement

• a person who acted on behalf of an owner

• the person who interested to buy the goods

Section 16 (1) of HPA, the owner may repossess the goods provided

• Hirer has defaulted 3 successive payment

• Hirer has defaulted 2 successive payment

• Hirer has defaulted 7 successive payment

• Hirer has defaulted 5 successive payment

According to Section 16(3) of HPA, the owner must serve notice to the hirer within _________ after repossession

• 14 days

• 16 days

• 21 days

• 22 days

Section 16(1D) of HPA, if the hirer dies the owner may repossess if there has been

• 2 successive defaults of payment

• 3 successive defaults of payment

• 4 successive defaults of payment

• 5 successive defaults of payment