This document outlines the requirements for a valid hire purchase agreement under Malaysian law. It states that a hire purchase agreement must contain specific details such as the date, number of installments, amount and timing of payments, description of goods, and addresses of parties. It must also include a table of payments showing the cash price, deposits, fees, interest charges, and total amount payable. The agreement cannot contain terms that differ from what was previously provided to the hirer. Each item hired must be covered by a separate agreement, and no alterations can be made after signing unless consented to by both parties. Non-compliance with these requirements could result in the agreement being considered void and penalties being imposed.

1. Hire purchase Agreement
Group: IRISS Date: 3rd March 2017
FORMATION OF A HIRE PURCHASE AGREEMENT
4. Agreement must contain certain detail
Sec. 4C (1)a
- Requires the
HP agreement
Date
No. of installments
Amount of each installments, to whom & place
Time
Description
Address
Section 4C (1)b
• Any part of consideration not in cash, HP must contain description.
• Ex. of non-cash consideration : Trade-in

2. TABLE OF PAYMENTS RM
i. Cash Price of Goods xx
ii. Deposit xx
iii. Freight charges xx
iv. Vehicle Registration Fee xx
v. Insurance xx
vi. TOTAL OF ITEM (i), (iii), (iv) and (v) less (ii) XXX
vii. Term charges xx
viii. BALANCE ORIGINALLY PAYABLE UNDER THIS
AGREEMENT [Total of items (iv) and (vii) ]
XXX
ix. Annual Percentage Rate Of Term Charges xx
x. Hire Purchase Price xx
xi. The Total Amount Payable XXX
Section 4C (1)c
• HP agreement also must provide a table
Section 4C (1)d
• The HP agreement shall not contain any particulars which differ in any material
from the particulars contained in the 2nd Schedule notice served on the hirer before
the HP agreement is entered.
• Hirers are advised to ensure the particulars in agreement are similar to 2nd
Schedule notice received earlier.
Section 4C (2)
• Any agreement does not comply with requirement can causes the agreement VOID.
• If the owner enters into agreement without stating the above contents, the owner
shall be guilty of an offence as prescribed by sec. 4c(3). the penalty for above
offence is prescribed under sec. 46.

3. 5. Separate agreement for every item of goods.
6. No alterations or addition can be made to the agreement.
Section 4D (1)
• If more than 1 goods being hired at the same time, same owner, same hirer, then the
agreement must be separate.
Section 4D (2)
• An agreement that contain more than 1 item is VOID.
Section 4D (3)
• Offence under the Act and penalty under section46 - owner would be liable.
Section 4D (4)
• Any item that complement / similar to each other, sold as a set - regarded as an item.
• Example: Dining table with the chairs
After signed the agreement, there should not be any alteration,
addition or amendment.
Under section 39, alteration, addition or amendment can be made
only if the parties have consented to it.