Repossession of Goods by the Owner under the Malaysian Hire-Purchase Act 1967: An Overview

Abstract

: Repossession of goods the subject-matter of hire-purchase agreement is an important remedy available to the owner in hire-purchase transactions under the Malaysian Hire -Purchase Act 1967. Repossession occurs when the hirer has defaulted in the payment of i nstalments. This is the right of the owner, which enables him to take back the goods from the hirer provided that he must follow certain conditions as provided by the Act. This paper aims to look into the safeguards that are in place before and after the exercise of repossession of goods by the owner. The methodology adopted in this paper is a legal library-based research, focusing mainly on primary and secondary legal sources. The paper concludes that the owner has the right to repossess the goods from the hirer if he commits a breach of his obligations under the hire -purchase agreement. However, the right to repossess can only be enforced accordingly with the existence of a valid hire -purchase agreement. The Act seems to be over protective of the hirer compared to the owner. The paper recommends that a balanced approach is needed in order to protect both parties in a hire -purchase agreement.