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    Law 299, Q2B.B

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    ShahrizatSmailKassim
    Baba, a 16-year-old student, purchased a motorcycle for RM12,500 but failed to make payments according to the hire purchase agreement with the dealer, Carat Motor. The transaction is not a valid contract because Baba did not comply with the terms of the agreement by missing installment payments. As the owner, Carat Motor has the right under the agreement to recover the motorcycle since Baba missed two installment payments within the required time frame and was given 21 days notice. The owner cannot sell the recovered motorcycle to others without Baba's written consent within 21 days.

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    Law 299, Q2B.B

    Uploaded by

    ShahrizatSmailKassim
    66 views1 page
    Baba, a 16-year-old student, purchased a motorcycle for RM12,500 but failed to make payments according to the hire purchase agreement with the dealer, Carat Motor. The transaction is not a valid contract because Baba did not comply with the terms of the agreement by missing installment payments. As the owner, Carat Motor has the right under the agreement to recover the motorcycle since Baba missed two installment payments within the required time frame and was given 21 days notice. The owner cannot sell the recovered motorcycle to others without Baba's written consent within 21 days.

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    Law 299,Q2B.B.docx

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    Baba, a 16-year-old student, purchased a motorcycle for RM12,500 but failed to make payments according to the hire purchase agreement with the dealer, Carat Motor. The transaction is not a valid contract because Baba did not comply with the terms of the agreement by missing installment payments. As the owner, Carat Motor has the right under the agreement to recover the motorcycle since Baba missed two installment payments within the required time frame and was given 21 days notice. The owner cannot sell the recovered motorcycle to others without Baba's written consent within 21 days.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    66 views1 page

    Law 299, Q2B.B

    Uploaded by

    ShahrizatSmailKassim
    Baba, a 16-year-old student, purchased a motorcycle for RM12,500 but failed to make payments according to the hire purchase agreement with the dealer, Carat Motor. The transaction is not a valid contract because Baba did not comply with the terms of the agreement by missing installment payments. As the owner, Carat Motor has the right under the agreement to recover the motorcycle since Baba missed two installment payments within the required time frame and was given 21 days notice. The owner cannot sell the recovered motorcycle to others without Baba's written consent within 21 days.

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    © All Rights Reserved
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    Download as docx, pdf, or txt
    of 1

    Question 2(b).

    b
    Explain whether the transaction constitue a valid contract, and what are the right
    parties concerned if any:
    Baba, a 16 years old student of computer technology contract at sita technology
    college made the following transaction and failed to paid for:

    A high speed motorbike which cost RM12,500.00 bought from carat motor

    Based on the situation above, the transaction for the motorbike no valid because
    baba not obey the hire purchase agreement between him as the hirrer and the owner.
    One of the details that stated in the In the hirrer purchase agreement contract, time
    of each installement to be paid. Based on the details, it see that baba as the hirrer
    failed to paid to the owner in the time that been stated. Firstly, under the section 11,
    Baba as the hirrer has right to remove the the goods based on the section which he
    can apply to the court for the removal of the goods. Secondly in the section 7(2), the
    goods under the hire purcahse agreement must be merchantable quality to the hirrer.
    It means the good is benefit to baba as the as a student. Take a look in the case Lau
    Hee Tiah vs Hargill Engineering Sdn Bhd(1980), which court decided to prove the
    goo it is not merchantable quality, the hirrer must show that the goods is no use for
    him in any purpose during that situation. In the terms of the owner when the hirrer
    had breached the Hire Purchase agreement, the owner of the goods has right to
    recover or get back their goods. Section 16(1) stated as the Form Fourth Schedule,
    if the hirrer had not paid 2 installemnt in the time and after the 21 days notice been
    given for the hirrer to paid the installemnt, the owner can right to recover back the
    goods. In case between Phang Brothers Motor Sdn Bhd vs Lee Aik Seng(1978),
    state 2 days before 21 days is considered as the possesison was not valid and under
    the section17(1) the owner that had already recover the possesion the good cannot
    sell th goods to other people without the written consent from the hirrer until
    expired of 21 days.

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