Hire Purchase Agreement

Topics: Hire purchase, Contract, Contract law Pages: 4 (692 words) Published: September 20, 2013

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:

“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. in Travelsight (M) Sdn Bhd & Anor v Atlas Corp Sdn Bhd [2003] 6 MLJ 658.

With reference to the Contracts Act 1950 and relevant cases, discuss the circumstances and elements of misrepresentations.
[20 marks]


On 4 March 2013, Jalil, an antique collector, entered a contract for purchase of an antique watch, which was described in good faith, by Farid, the seller, as more than 100 years of age. Jalil paid the deposit of RM10 000 out of the total price of RM 50 000 and promised to pay the balance within one week. On 6 March 2013, while attending an auction for antiques, Jalil met Yati, who told him that she was the person who sold the antique watch which she inherited from her father, to Farid. Yati told Jalil that the watch is not very old as her father bought the watch on the day that Malaysia got its independence, i.e. on 31 August 1957. Jalil was very disappointed with what Yati told him and immediately sent an email to Farid which sated that he intend to terminate the contract which he entered with Farid on the ground that there was a misrepresentation of fact. Jalil also wanted to claim back the RM 10 000 of deposit which he has already paid to Farid.

Advise Farid.
[20 marks]


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