1

On 3.3.2019 Salleh visited a used car showroom as he is interested to buy a second-hand car. The salesman, Ismail, recommended to him the Proton Perdana motor car, and informed him that the car was in tip top condition. Salleh then agree to enter into hire purchase agreement with XYZ Finance Bhd. for the hire purchase of a second-hand Proton Perdana.
After using the car for two days, Salleh discovered that the engine condition was not performing in satisfactory manner and the brakes were faulty. Salleh is unhappy with the performance of the car and wishes to terminate the hire-purchase agreement.
Advise Salleh on the following:

Notice of the second schedule was not given to Salleh until 4.3.2019.
The agreement contained a clause in which states that the owner will not be liable for the representation or statement made by the dealer or his servant or agent.
The agreement expressly negates the owner’s liability for fitness and merchantable quality of the car.
On December 2019, Salleh’s business failed and his goods including the Proton Perdana motor car were seized by another creditor in execution of a judgement

(100 marks)

2

On 1.7.2019 Rian entered into a hire-purchase agreement with Abraham Electrical Goods Sdn Bhd to hire purchase a Cinema Screen LED television set. He paid the instalments regularly for three months. Since then Rian has left his job. He has defaulted twice in his monthly instalments’ payments, that is in October and November respectively to Abraham Electrical Goods Sdn Bhd.

Subsequently,Abraham Electrical Goods Sdn Bhd sent a letter on 20th December 2019 to Rian informing him that he had defaulted the hire-purchase agreement by his failure to pay the two instalment payments in October and November and that he must therefore remedy the default. A week after he received the letter from Abraham Goods Sdn Bhd, two men came to his house and informed him that they were instructed by Abraham Electrical Goods Sdn Bhd to repossess Cinema Screen LED television set. When Rian protested they rudely brushed him aside and abruptly dismantle the television set and took it away. Rian now seeks your advice.
Advise Rian as to his rights. 

Answer rating: 100% (QA)

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