End of Chapter Hire Purchase
1. Based on the Hire Purchase Act, 1967 stated that hire purchase is the hiring of goods with an option to purchase. Is it applicable to all types of goods? Explain it.
Answer :
A limited range of goods is covered by the Hire – Purchase Act 1967. They are listed in the First Schedule and may be varied by the Minister from time to time. The current list comprises the following : * All consumer goods * Motor vehicles, namely * Invalid carriages * Motor cycles * Motor cars including taxi cabs and hire cars * Good vehicles ( where the maximum permissible laden weight does not exceed 2, 540 kilograms) * Buses, including stage buses.
Consumer goods is defined in section 2(1) to mean goods purchased for personal, family and house hold purpose. In consequence, goods (other than motor vehicles) which would normally be regarded as consumer goods but purchased for business purpose or use, such as for consumption in the office, are excluded from the Act. However, there appears to be an inconsistency. While section 1(2) declares that the Act applies in respect only of hire – purchase agreement relating to goods specified in the First Schedule, section 4(1) mentions hire- purchase agreement in respect of any goods. To avoid the inconsistency, one approach would be to read the expression any goods by reference to section 1(2) to mean any goods listed in the first schedule.
By virtue of section 2(1), goods also includes any replacement or renewals by the hirer of any part or parts and any accessories added by the hirer during the period of the hiring.
In Kesang Leasing Sdn Bhd Vs Mohd Yusof Bin Ismail &Anor 1990 1MLJ 291, the High Court held that section 1(2) did not exclude the application of provisions of the Act to hire- purchase agreements in respect of goods outside its coverage provided the parties to an agreement consented to be bound by them. This construction has doubtless extended the scope of the Act to allow parties the liberty
Answer :
A limited range of goods is covered by the Hire – Purchase Act 1967. They are listed in the First Schedule and may be varied by the Minister from time to time. The current list comprises the following : * All consumer goods * Motor vehicles, namely * Invalid carriages * Motor cycles * Motor cars including taxi cabs and hire cars * Good vehicles ( where the maximum permissible laden weight does not exceed 2, 540 kilograms) * Buses, including stage buses.
Consumer goods is defined in section 2(1) to mean goods purchased for personal, family and house hold purpose. In consequence, goods (other than motor vehicles) which would normally be regarded as consumer goods but purchased for business purpose or use, such as for consumption in the office, are excluded from the Act. However, there appears to be an inconsistency. While section 1(2) declares that the Act applies in respect only of hire – purchase agreement relating to goods specified in the First Schedule, section 4(1) mentions hire- purchase agreement in respect of any goods. To avoid the inconsistency, one approach would be to read the expression any goods by reference to section 1(2) to mean any goods listed in the first schedule.
By virtue of section 2(1), goods also includes any replacement or renewals by the hirer of any part or parts and any accessories added by the hirer during the period of the hiring.
In Kesang Leasing Sdn Bhd Vs Mohd Yusof Bin Ismail &Anor 1990 1MLJ 291, the High Court held that section 1(2) did not exclude the application of provisions of the Act to hire- purchase agreements in respect of goods outside its coverage provided the parties to an agreement consented to be bound by them. This construction has doubtless extended the scope of the Act to allow parties the liberty