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WHO SHOULD SIGN THE HIRE PURCHASE AGREEMENT ?

A hire purchase agreement must be signed by or on behalf of all parties to the agreement.

However, the finance company, dealer, agent or person acting on behalf of the finance company must not request an intending hirer or agent to sign a hire purchase agreement or other form or document relating to the hire purchase agreement unless such document is duly completed or filled in.

This means, don't sign blank agreement forms or documents.

A hire purchase agreement that does not comply with the above shall be void.

WHAT ARE THE DETAILS THAT MUST BE STATED IN A HIRE PURCHASE AGREEMENT ?

Under the Hire Purchase Act 1967, a hire purchase agreement must :

1. specify a date on which the hiring shall be deemed to have commenced
2. specify the number of installments to be paid under the agreement by the hirer
3. specify the amount of each of installments and the person whom and the place at which the payments of these installments are to be made
4. specify the time for the payment of each of those installments
5. contain a description of the goods sufficient to identity them
6. specify the address where the goods under the hire purchase agreement are.

Among others, the hire purchase agreement must also set out in tabular form

1. cash price - the price at which at the time of signing the agreement the hirer might have purchased the goods for cash
2. deposit - the amount paid by deposit
3. freight or delivery charges if any - the amount included in the total amount payable to cover the expense of delivering the goods to the hirer
4. vehicle registration fees - any amount included in the total amount payable to cover vehicle registration fees in respect of the goods
5. insurance - any amount included in the total amount, payable for insurance in respect of the goods
6. the total amounts referred to in the (i), (iii), (iv) and (v), less (ii)
7. terms charges or interests - the amount of any other charges included in the total amount payable
8. the annual percentage rate for terms charges which shall be calculated in accordance with the formula set out in the Seventh Schedule of the Hire Purchase Agreement
9. the total of the amounts referred to in (vi) and (vii), described as "the balance originally payable under the agreement and
10. the total amount payable.

Where a hire purchase agreement does not comply with the above, it shall be void.