Question: QUESTION 2 Leong has a van which is under a hire-purchase agreement with Maju Bank for seven years. As his business was severely affected by

QUESTION 2 Leong has a van which is under a hire-purchase

QUESTION 2 Leong has a van which is under a hire-purchase agreement with Maju Bank for seven years. As his business was severely affected by the pandemic, Leong could not afford to pay the instalments for the van. His friend, Chan, is willing to take over in paying the instalments from Leong. Alternatively, Chan is also willing to buy the van in cash if the price is suitable. Chan wants to know how many instalments are left to be paid under the agreement, but Leong is uncertain. Leong is also not sure of the procedures to let Chan take over in paying the instalments or to end the agreement so that Chan can buy the van from Maju Bank. Advise Leong on the relevant statutory provisions of the Hire Purchase Act 1967 in respect of the above situations. (20 marks)

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