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BUSINESS LAW (LAW 299) TUTORIAL 5 PREPARED FOR : MDM MARDIAH HAYATI BT ABU BAKAR PREPARED BY : NURHIDAYAH BINTI ROSLAN FILZAH AISYAH BT MUHAMMAD SAED NOR FATHIAH BT KHAIRAL FAIZI

Business law 2

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Page 1: Business law 2

BUSINESS LAW (LAW 299)

TUTORIAL 5

PREPARED FOR : MDM MARDIAH HAYATI BT ABU BAKAR

PREPARED BY :NURHIDAYAH BINTI ROSLAN

FILZAH AISYAH BT MUHAMMAD SAEDNOR FATHIAH BT KHAIRAL FAIZI

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QUESTION 5

Amisha bought a car under a hire purchase agreement from Senang Finance. Amisha failed to pay her monthly installments from January 2007 to April 2007. Senang Finance wanted to repossess the car. Advice Amisha on the procedure of repossession under the Hire Purchase Act 1967.

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Relevant statute : Hire Purchase Act 1967

Section 2(1) :

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Section 16(3)

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This notice gives the option to the hirer either : To exercise the hirer’s right to resume

possession of the goods within 21 days and pay the arrears as well as the penalty for breaching the agreement, OR

To terminate the HP agreement and pay the balance sum payable under the said agreement.

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• If the owner fails to serve the 5th schedule notice, the owner’s right under the HP agreement ceases and determines. An owner will lose all rights under the HP agreement and would not be entitled to get any remedies; unless the hirer has exercised his rights to recover the goods that have been repossessed.

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• According to Section 18 (1) (a):

-The hirer may within twenty-one days after the service on him of the notice referred to in section 16 (3) by giving to the owner a notice in writing signed by the hirer or his agent –

(i) require the owner to re-deliver to or to the order of the hirer of the goods that have been repossessed; or

(ii) require the owner to sell the goods to any person introduced by the hirer who is prepared to buy the goods for cash at a price not less than the estimated value of the goods set out in the first mentioned notice.

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APPLICATIONS

• Hirer = Amisha (the person who has taken the goods which is car from the owner)

• Owner = Senang Finance (the person who has let goods which is a car to a hirer, Amisha)

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According to Section 16(3), Amisha has an option after receiving the notice in order to repossess her car.

She can choose either to exercise her right to resume possession of the car within 21 days and pay to the Senang Finance the arrears as well as the penalty for breaching agreement which is not paying four months of the installment .

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Amisha can also choose to terminate the hire purchase agreement and pay to the Senang Finance the balance sum payable under the said agreement.

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CONCLUSION

Amisha can repossess the car from the owner which is Senang Finance by using two different methods either to continue with the agreement or to terminate the agreement after paying all the sum payable.

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THANK YOU