Towards A Compulsory Purchase Code Hire Purchase Essay


1. Has Cyclops right under the hire purchase agreement been violated?

2. Can Cyclops get legal redress in cancellation of the HP agreement?


Answer 1

Identification of the issue

Explanation of the law Relating to the Issue

Based on Sec 2 of the hire purchase Act, Sec 4A (1) provides a clause on protection and guarantee provided to the customer upon the acquisition of the good. Section 4(1A) of 1967 A hire purchase agreement should be in writing and the contents of the agreement agreed upon. Conditions and warrantees are supposed to be implied in every hire-purchase agreement. The section as a right should have the liability of the owner and the person who is acting on behalf of the owner for misrepresentation (Nasser Hamid., 2008).

Application of the law

Cyclops rights in this case include, the duty of the seller to give information and supply documentation. When he wanted to buy the car, he was told that the car was in good condition, had improved fuel consumption and reduced levels of noise and vibration. After a month, he realized that fuel consumption for the Perodia Axia increased each week.


Under the Act, a hire –purchase agreement that pursuant to the law contravenes subsection (1) shall be void, the seller shall be guilty of an offense under the Act(Salleh Buang., 2001).

Identification if the issue

Answer 2

Explanation of the law Relating to the Issue

Besides that, under S.4B(2A), the agreement which is not duly completed cannot be deliver .Hence, the agreement deemed as void once it’s not signed, duly completed under S.4B(3).

Application of the law

Cyclops no longer wants the car. However, legally he is under a hire purchase agreement which is a contact binding to both Cyclops and the seller. The law is legally binding. However, under the agreement the terms and conditions and the rights of the seller cannot be changed. Besides this, HP Act S.4B(2A) states that an agreement that is not duly finished ofr completed should not be delivered. If its not signed it is deemed as void under S.4B(3) of HP Act of 1967. If the vehicle was good then he can take back the car and negotiate other terms with the seller but under a gentle man’s agreement. The seller is not obligated to take back the car.


Cyclops can sell the car from a practical side to another person, clear the higher purchase agreement then buy the car of his will(Towards a compulsory purchase code, 2004). On a legal side, Cyclops is under no obligation to take back the car as it is in good shape and is not defective.


Nasser Hamid. (2008). Hire purchase. Subang Indah, Petaling Jaya, Selangor, Malaysia: Gavel Publications.

Salleh Buang. (2001). Malaysian law on hire purchase. Petaling Jaya, Selangor, Malaysia: Sweet & Maxwell Asia.

Towards a compulsory purchase code. (2004). London: Stationery Office.

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