Malaysia legislation
Section 15
Section 15
(2)
Where the nature of the goods comprised in a hire-purchase agreement or the facilities available at the place or places of business of the owner or the place specified in the agreement is or are such that it would be impracticable to return the goods to such a place, the hirer may terminate the agreement by returning the goods to any place agreed to by the parties to the agreement.
(3)
Where the parties fail to agree, the hirer who proposes to return goods to the owner under this section may, subject to subsection(4), apply to a court of a Magistrate for an order fixing the place to which the goods may be returned, and the court—
(a)
shall fix the place that is in its opinion reasonable having regard to all the circumstances surrounding the transaction;
(b)
may order that, subject to the goods being returned to the owner, the agreement shall be determined on such date as is specified in the order, not being the date before the hirer required the owner to nominate a reasonable place for the return of the goods.
(4)
Notice of an application under subsection (3) shall be given to the owner by the hirer.
(5)
Where a hire-purchase agreement is determined pursuant to this section—
(a)
the hirer may require the owner to sell the goods to any person introduced by the hirer who is prepared to buy the goods for cash at a price agreeable to the owner;
32 Laws of Malaysia ACT 212
(b)
where the value of the goods at the time when it is returned to the owner is more than the balance outstanding under the hire-purchase agreement, the hirer is entitled to the difference which is recoverable as a debt due;
(c)
where the value of the goods at the time when it is returned to the owner is less than the balance outstanding under the hire-purchase agreement, the owner is entitled to the difference which is recoverable as a debt due.
(6)
For the purposes of this section—
(a)
“balance outstanding under the hire-purchase agreement”
means—
(i)
where in the hire-purchase agreement the terms charges are at a fixed rate, the total sum payable by the hirer to complete the purchase of goods to which the agreement relates and the amount derived from interest on overdue instalments which has yet to be paid less—
(a)
the amount paid by or on behalf of the hirer excluding deposit;
(b)
statutory rebate for terms charges; and
(c)
statutory rebate for insurance, if any; or
(ii)
where in the hire-purchase agreement the terms charges are at a variable rate, the outstanding amount financed and terms charges accrued and calculated up to the next due date of payment less statutory rebate for insurance, if any;
(b)
“value of the goods at the time when it is returned to the owner” means—
Hire-Purchase 33
(i)
the best price that could reasonably be obtained by the owner; or
(ii)
if the hirer had introduced a person who had bought the goods for cash, the amount paid by that person.
Repossession
Notices to be given to hirer when goods repossessed