QUESTION 2 (20 MARKS)

a.

Mr. Red had purchased a car by way of hire purchase financed by Interest Finance Sdn.

Bhd. During the meeting with Interest Finance Sdn. Bhd., Mr. Red was instructed to

sign a hire purchase agreement. However, the agreement did not provide details about

the date of payment, duration of instalment and the amount of final instalment. When

Mr. Red insisted the information to be stated in the agreement, Interest Finance Sdn.

Bhd. said they will fill it up later. Mr. Red then signed the agreement and the car was

delivered to him.

Advise Mr. Red on the validity of the hire purchase agreement. Support your answer

with the provisions in Hire Purchase Act 1967 and decided cases (if any).

(10 marks)

b.

Purple, a tailor agreed to buy from Yellow a sewing machine, which Purple had not

seen. Yellow told him that the machine had been bought the previous year and have

only been used to sew less than 100 pair of cloths. Both of them agreed that the full

payment of the price and delivery process must take place on 1st January 2022.

Unfortunately, Yellow was fully occupied on the actual delivery date and only able to

make the delivery on 3 rd January 2022. On delivery the machine was rejected by Purple,

who complained that it was very old and had been mended. The condition of the sewing

machine is not equivalent with the description given by Yellow previously. Purple

would like to return the machine and demand to recover the full price from Yellow.

Examine whether Purple can repudiate the contract and propose any possible remedies

available for her. Support your answer with Sale of Goods Act 1957 and decided cases

(if any).

(15 marks)