Hire-Purchase Act · 2024 Revised Edition · Part · Form and Contents of Hire-Purchase Agreements
3. Requirements relating to hire-purchase agreements
Official textFrom Attorney General's Chambers, unchanged
Before a hire-purchase agreement is entered into in respect of any goods, the owner shall give or cause to be given to the prospective hirer a written statement duly completed in accordance with the form set out in
hire-purchase agreement
“hire-purchase agreement” includes a letting of goods with an option to purchase and an agreement for the purchase of goods by instalments (whether the agreement describes the instalments as rent, hire or otherwise), but does not include any agreement — (a) whereby the property in the goods comprised therein passes at the time of the agreement or upon or at any time before delivery of the goods; or (b) under which the person by whom the goods are being hired or purchased is a person who is engaged in the trade or business of selling goods of the same nature or description as the goods comprised in the agreement;
Schedule 2.
Where a hire-purchase agreement is entered into by way of acceptance by the owner of a written offer signed by or on behalf of the hirer, subsection (1) is deemed not to have been complied with unless the written statement was given to the prospective hirer before the written offer was signed.
owner
“owner” means a person who lets or has let goods to a hirer under a hire-purchase agreement and includes a person to whom the rights or liabilities of the owner under the agreement have passed by assignment or by operation of law;
Every hire-purchase agreement —
shall be in writing and in the English or Malay language;
shall be signed by or on behalf of the hirer and all other parties to the agreement;
shall —
specify a date on which the hiring is deemed to have commenced;
specify the number of instalments to be paid under the agreement by the hirer;
specify the amounts of each of these instalments and the person to whom and the place at which the payments of these instalments are to be made;
specify the time for the payment of each of those instalments;
contain a description of the goods sufficient to identify them;
Hire-Purchase
shall, where any part of the consideration is or is to be provided otherwise than in cash, contain a description of that part of the consideration; and
shall set out in a tabular form —
the price at which at the time of signing the agreement the hirer might have purchased the goods for cash
(referred to in this Act and to be described in the agreement as cash price);
the amount paid or provided by way of deposit
(referred to in this Act and to be described in the agreement as deposit) showing separately the amount paid in cash and the amount provided by any consideration other than cash;
any amount (included in the total amount) payable to cover the expenses of delivering the goods or any of them or to the order of the hirer (referred to in this Act and to be described in the agreement as freight);
any amount (included in the total amount) payable to cover vehicle registration fees in respect of the goods
(to be described in the agreement as vehicle registration fees);
any amount (included in the total amount) payable for insurance in respect of the goods or any of them;
the total of the amounts referred to in sub-paragraphs
, (iii), (iv) and (v) less the deposit;
the amount of any other charges included in the total amount payable (referred to in this Act and to be described in the agreement as terms charges);
the annual percentage rate for terms charges which shall be calculated in accordance with the formula set out in Schedule 3;
the total of the amounts referred to in sub-paragraphs
and (vii) (referred to in this Act as the balance originally payable under the agreement); and
the total amount payable.
Hire-Purchase 12
An owner who enters into a hire-purchase agreement that does not comply with subsection (3) is guilty of an offence.
Terms defined in s 2
goods
Defined · s 2“goods” includes any replacement or renewal by the hirer of any part or parts thereof and any accessories added or additions made thereto by the hirer during the period of the hiring;
hire-purchase agreement
Defined · s 2“hire-purchase agreement” includes a letting of goods with an option to purchase and an agreement for the purchase of goods by instalments (whether the agreement describes the instalments as rent, hire or otherwise), but does not include any agreement — (a) whereby the property in the goods comprised therein passes at the time of the agreement or upon or at any time before delivery of the goods; or (b) under which the person by whom the goods are being hired or purchased is a person who is engaged in the trade or business of selling goods of the same nature or description as the goods comprised in the agreement;
hirer
Defined · s 2“hirer” means the person who takes or has taken goods from an owner under a hire-purchase agreement and includes a person to whom the rights or liabilities of the hirer under the agreement have passed by assignment or by operation of law;
owner
Defined · s 2“owner” means a person who lets or has let goods to a hirer under a hire-purchase agreement and includes a person to whom the rights or liabilities of the owner under the agreement have passed by assignment or by operation of law;
vehicle registration fees
Defined · s 2“vehicle registration fees” means any amount to be provided under a hire-purchase agreement by the owner for payment by or on behalf of the hirer under this Act in connection with the registration and use of a motor vehicle, including any amount payable for third-party insurance.
Part 3
Part 4
Part
Guarantors
Part
Insurance
Part