Hire Purchase Act

Question 1

The HPA is only applicable for…

Answer 1

goods specified under the First Schedule unless parties involved still agree to be bound by the Act with goods that are not under the First Schedule.

Question 2

What is the case of Kesang Leasing v Mohd Yusof about?

Answer 2

Goods which do not fall under the List can still be governed by the Act, the intention of the parties to be bound by the Act may be inferred from their conducts.

Question 3

Section 2 of HPA provides that…

Answer 3

HPA is a letting go of goods with the option to purchase by instalments.

Question 4

What are the 3 stages of the formation of a HPA?

Answer 4

1. Pre-contractual obligations
2. Construction of HPA
3. Post-contractual obligations

Question 5

Which provisions under the HPA governs the pre-contractual obligations of the formation of a HPA?

Answer 5

Sections 4 and 30A of the HPA.

Question 6

Which provisions under the HPA governs the construction of the formation of a HPA?

Answer 6

Sections 4A, 4B, 4C and 4D of the HPA.

Question 7

Section 39 of the HPA states that…

Answer 7

alterations made to the HPA after it has been signed shall have no effect unless hirer has consented to the alterations.

Question 8

Which provisions under the HPA governs the post-contractual obligations of the formation of a HPA?

Answer 8

Section 5 of the HPA.

Question 9

What section governs all of the offences under the HPA?

Answer 9

Section 46 of the HPA.

Question 10

A notice or document must be communicated and effected by serving it to the person for it to be valid. This is provided under…

Answer 10

Section 43 of the HPA.

Question 11

Section 40 of the HPA states that…

Answer 11

if the goods under the HPA are second-hand goods, they must be described in the agreement as so.

Question 12

If the goods are not described as second-hand goods under the HPA, what is the effect to the hirer?

Answer 12

The hirer will be relieved of interest payments and will only need to pay the balance between the cash price and the deposit as instalments.

Question 13

Owner can escape liability from not describing the goods as second-hand in an agreement if…

Answer 13

1. The hirer was aware that the goods were second-hand
2. The owner was unaware that the goods were second-hand

Question 14

What are the implied warranties under a HPA?

Answer 14

1. Section 7(1)(a) : Hirer is entitled to quiet possession of the goods
2. Section 7(1)(c) : Goods shall be free from any charge or encumbrance when property is to pass

Question 15

What are the implied conditions under a HPA?

Answer 15

1. Section 7(1)(b) : Owner has a right to sell the goods at the time when the property is to pass
2. Section 7(2) : Goods shall be of merchantable quality
3. Section 7(3) : Goods shall be reasonably fit for purpose

Question 16

What happened in Ahmad Ismail v Malayan Motor Company?

Answer 16

The court held that there can only be a breach of the implied condition under Section 7(1)(b) if the company had no right to sell the car at the time that the property was to pass.

Question 17

In Ling Swee Lin v Public Finance, the owner…

Answer 17

had no right to sell the goods and therefore, the HPA was null and void.

Question 18

Section 7(2) of the HPA shall not be implied where…

Answer 18

the hirer has examined the goods for defects which such thorough examination would have revealed.

Question 19

However, Sections 7(2) and (3) shall not be implied if…

Answer 19

the goods are second-hand goods and the quality has been expressed in the agreement through an exclusion clause that the hirer has acknowledged.

Question 20

Consequences of a breach is governed under…

Answer 20

Section 12(2) and 12(3) of SOGA.

Question 21

In Hong Leong Leasing v Tan Kim Cheong, the court held that…

Answer 21

the hirer’s act of continuing to pay the instalments does not preclude the hirer from repudiating the contract due to the breach.

Question 22

The liability of an owner for misrepresentation is provided under…

Answer 22

Section 8(1)(a) of the HPA.

Question 23

In Lau Hee Teah v Hargill Engineering, the court found that…

Answer 23

there was no misrepresentation made and therefore, the plaintiff had no right to rescind the contract.

Question 24

Section 8(1)(b) states that…

Answer 24

hirer may claim damages against the person who made the representation, warranty or statement.

Question 25

Owner must compensate the hirer if the contract is rescinded due to misrepresentation in virtue of…

Answer 25

Sections 65 and 66 of the Contracts Act 1950.