Essay on Hire Purchase Agreement

698 WordsSep 12, 20133 Pages
ASSIGNMENT – BMLW5103 MAY SEMESTER 2013 BMLW 5103- BUSINESS LAW ASSIGNMENT OBJECTIVE: To evaluate the students understanding in the element which effect free consent in a contract, the issues of repossession under a hire purchase agreement and the formation and dissolution of a partnership. INSTRUCTIONS: Students have to discuss all the questions and justify their answer with correct provisions under respective statutes and relevant precedents. QUESTION 1: a) “In simple language, a misrepresentation is a representation that is untrue. It is a false statement made by one party to the contract to the other, before, or at the time of contracting, on which that other party relied on in contracting.” Per Abdul Malik Ishak J.…show more content…
On 15 January 2012, he signed a hire-purchase agreement for the car with OUR Bank. The hire purchase agreement contained all the standard terms of a hire purchase agreement. Karim started paying the installments since February 2013. In October 2012, Karim met an accident and was hospitalized for 5 months. As a result of the accident, Karim who carried on his own business faced financial difficulties and failed to make three consecutive payments of the installment. a) Advice OUR Bank on the legal action which they could take against Karim and the procedures which they should follow before repossession of the car. [15 marks] b) Discuss Karim’s legal rights under the Hire Purchase Act 1967 if OUR Bank repossesses the car. [15 marks] [TOTAL: 30 MARKS] QUESTION 3: Raju and Kamala set up a consultancy firm under the name of Expert Consultancy in June 2000. The partnership agreement clearly stated that the partnership shall remain for ten years period. In December 2010, Kamala took a personal loan amounting to RM100,000 from Bank Business but failed to pay three installments. Kamala later assigned her interest in the firm to Bank Business. Raju was not happy with the assignment and gave a notice to Kamala for dissolution of the firm. Raju decided that if Kamala refused to accept the notice, he would apply for dissolution by a court order. Discuss: a) The right of Kamala to assign her interest in Expert Consultancy to Bank Business. [10
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