1

LAW ON HIRE PURCHASELAW ON HIRE PURCHASE

LECTURE 9LECTURE 9

Charles NicholsonCharles Nicholson

2

APPLICABLE LAWAPPLICABLE LAW

The law on hire purchase in Malaysia is contained in the The law on hire purchase in Malaysia is contained in the Hire Purchase Act 1967Hire Purchase Act 1967 amended by the amended by the Hire Purchase Hire Purchase (Amendment) Act 2010(Amendment) Act 2010. .

The Act regulates the form and contents of hire-purchase The Act regulates the form and contents of hire-purchase agreements, the rights and duties of parties to such agreements, the rights and duties of parties to such agreements and makes provisions for other matters agreements and makes provisions for other matters connected therewith.connected therewith.

3

The Act applies throughout Malaysia in respect of hire The Act applies throughout Malaysia in respect of hire purchase agreements relating to the goods specified in the purchase agreements relating to the goods specified in the First Schedule - First Schedule - s. 1(2) HPAs. 1(2) HPA

LIST OF GOODS LIST OF GOODS – – under the First Schedule.under the First Schedule. 1.1. All consumer goodsAll consumer goods2.2. Motor vehicles, namely -Motor vehicles, namely -

a)a) Invalid CarriagesInvalid Carriagesb)b) Motor CyclesMotor Cyclesc)c) Motor Cars including taxi cabs and hire carsMotor Cars including taxi cabs and hire carsd)d) Goods Vehicles – limit on max. weight - 2540 kg.Goods Vehicles – limit on max. weight - 2540 kg.e)e) Buses, including stage busesBuses, including stage buses

4

‘‘Consumer goods’Consumer goods’ means goods purchased for personal, means goods purchased for personal, family or household purposes – family or household purposes – s. 2(1)s. 2(1)

invalid carriages: motor vehicles which are specially invalid carriages: motor vehicles which are specially designed and constructed or adapted for the use of a designed and constructed or adapted for the use of a person suffering from some physical defect or disability person suffering from some physical defect or disability and the unladen weight of which does not exceed 250 and the unladen weight of which does not exceed 250 kilogrammes – kilogrammes – s. 5(1)(a) Road Transport Act 1987s. 5(1)(a) Road Transport Act 1987

The Act would apply to hire purchase agreements in The Act would apply to hire purchase agreements in respect of goods not covered by the Act if the parties respect of goods not covered by the Act if the parties have agreed to be bound by the provisions of the Act.have agreed to be bound by the provisions of the Act.

Kesang Leasing Sdn Bhd v. Mohd Yusof bin Ismail & Kesang Leasing Sdn Bhd v. Mohd Yusof bin Ismail & Anor.Anor. [1990] 1 MLJ 291[1990] 1 MLJ 291

5

• In respect of goods not specified under the First Schedule In respect of goods not specified under the First Schedule the parties are free to contract outside the provisions of the parties are free to contract outside the provisions of the Act if they do not agree to be bound by the Act.the Act if they do not agree to be bound by the Act.

Even though an agreement may not fall within the ambit Even though an agreement may not fall within the ambit of the Hire-Purchase Act (not within the First Schedule) of the Hire-Purchase Act (not within the First Schedule) and is also not a bill of sale, it is a valid and is also not a bill of sale, it is a valid hire-purchase hire-purchase agreement under common lawagreement under common law..

A hire-purchase agreement at common law is regarded as A hire-purchase agreement at common law is regarded as a form of contract whereby the owner lets goods out on a form of contract whereby the owner lets goods out on hire and agrees that the hirer may either return the goods hire and agrees that the hirer may either return the goods and terminate the contract or elect to buy the goods on and terminate the contract or elect to buy the goods on the completion of the required periodic payments.the completion of the required periodic payments.

MBF Finance Bhd. v. Low Ping Ming T/A Low Peng MBF Finance Bhd. v. Low Ping Ming T/A Low Peng EnterpriseEnterprise [2005] 3 MLJ 208 CA[2005] 3 MLJ 208 CA

6

DEFINITIONS – S. 2(1)DEFINITIONS – S. 2(1)

A ‘hire-purchase agreement’ is A ‘hire-purchase agreement’ is defineddefined inin s. 2(1)s. 2(1) HPAHPA to to include:-include:-a letting of goods with a letting of goods with an option to purchasean option to purchase, and an , and an agreement for the purchase of goods by agreement for the purchase of goods by instalmentsinstalments..

Property in the goodsProperty in the goods does not pass at the time of the does not pass at the time of the agreement or at any time before delivery.agreement or at any time before delivery.

Until the hirer had exercised his Until the hirer had exercised his optionoption to purchase by to purchase by paying the total amount and fulfilling all his obligations paying the total amount and fulfilling all his obligations under the hire purchase agreement, property in the goods under the hire purchase agreement, property in the goods do not pass to the hirer. It remains with the owner.do not pass to the hirer. It remains with the owner.

Credit Corporation (M) Sdn Bhd v. the Malaysian Credit Corporation (M) Sdn Bhd v. the Malaysian Industrial Finance Corp. & Anor Industrial Finance Corp. & Anor [1976] 1 MLJ 83.[1976] 1 MLJ 83.

7

It excludes agreements under which goods are delivered It excludes agreements under which goods are delivered to a dealer for the purpose of sale of the same goods. to a dealer for the purpose of sale of the same goods.

A A ‘hirer’‘hirer’ is a person who takes goods from an owner is a person who takes goods from an owner under a hire-purchase agreement and includes a person under a hire-purchase agreement and includes a person to whom the hirer’s rights or liabilities under the to whom the hirer’s rights or liabilities under the agreement have passed by assignment or by operation of agreement have passed by assignment or by operation of law.law.

The The ‘owner’‘owner’ is a person who lets goods to a hirer under is a person who lets goods to a hirer under a hire-purchase agreement and includes a person to a hire-purchase agreement and includes a person to whom the owner’s rights or liabilities under the whom the owner’s rights or liabilities under the agreement have passed by assignment or by operation of agreement have passed by assignment or by operation of law.law.

8

FORMATION OF A HIRE PURCHASE AGREEMENTFORMATION OF A HIRE PURCHASE AGREEMENT

Before a hire purchase agreement is entered into, the Before a hire purchase agreement is entered into, the owner is required to give the prospective hirer a owner is required to give the prospective hirer a written written statementstatement duly completed and signed in accordance with duly completed and signed in accordance with the form set out inthe form set out in Part 1Part 1 of the of the Second ScheduleSecond Schedule..

The document contains a short The document contains a short descriptiondescription of the goods of the goods comprised in the hire purchase agreement and a summary comprised in the hire purchase agreement and a summary of the hirer’s financial obligations under the proposed hire of the hirer’s financial obligations under the proposed hire purchase agreement.purchase agreement. s. 4(1)s. 4(1)

9

• Particulars include:- cash price of the good, deposit, Particulars include:- cash price of the good, deposit, insurance, term charges, duration of payment of insurance, term charges, duration of payment of instalments, number of instalments, amount of each instalments, number of instalments, amount of each instalment, etc. instalment, etc.

This This pre-contractual duty of disclosurepre-contractual duty of disclosure is a is a mandatory mandatory obligationobligation on the part of the owner – the non- on the part of the owner – the non-compliance of which would render a hire-purchase compliance of which would render a hire-purchase agreement void agreement void – – s. 4(4)s. 4(4)

Affin Credit (Malaysia) Sdn Bhd v. Yap Yuen FuiAffin Credit (Malaysia) Sdn Bhd v. Yap Yuen Fui [1984] 1 MLJ 169 (Federal Court)[1984] 1 MLJ 169 (Federal Court)

10

A hire purchase agreement shall be in A hire purchase agreement shall be in writingwriting and it shall and it shall be either in the national language or the English be either in the national language or the English Language - Language - s. 4A(1) & (1A)s. 4A(1) & (1A). . Otherwise it shall be Otherwise it shall be voidvoid – – s. 4A(2)s. 4A(2). .

The agreement is deemed The agreement is deemed not to be in writingnot to be in writing: : if the handwriting is not clear and legible; orif the handwriting is not clear and legible; or where it is printed and the print is of a size smaller than where it is printed and the print is of a size smaller than

the type known as ten-point Times; the type known as ten-point Times; or that is not printed in black -or that is not printed in black - s. 45(1)s. 45(1)..

It must be It must be signedsigned by or on behalf of all parties to the by or on behalf of all parties to the agreement - agreement - s. 4B(1)s. 4B(1)

The hire purchase agreement must be duly The hire purchase agreement must be duly completedcompleted before it is signed by the hirer - before it is signed by the hirer - s. 4B(2)s. 4B(2). It shall be . It shall be voidvoid if it contravenes if it contravenes s. 4B(1) &(2).s. 4B(1) &(2).

11

s. 4C(1)s. 4C(1) lists the information that must be contained in lists the information that must be contained in every hire purchase agreement – the every hire purchase agreement – the contentscontents include:- include:-

the date of commencement of the hiring;the date of commencement of the hiring; the number of instalments;the number of instalments; the amount of instalments, time of payment, to whom and the amount of instalments, time of payment, to whom and

where they are payable;where they are payable; the description of the goods sufficient to identify them;the description of the goods sufficient to identify them; the address where goods are situated;the address where goods are situated; consideration – where consideration is not cash such as consideration – where consideration is not cash such as

an old car used for trade-in, then there has to be a an old car used for trade-in, then there has to be a description of the trade in;description of the trade in;

particulars on the cash, deposit, freight, vehicle particulars on the cash, deposit, freight, vehicle registration fees, insurance, charges and the amount registration fees, insurance, charges and the amount payable (all this has to be contained in a table);payable (all this has to be contained in a table);

12

There must be a There must be a separate HP agreement separate HP agreement in respect of in respect of every item of goods purchased under the Act -every item of goods purchased under the Act - s. 4D(1)s. 4D(1)

Otherwise, the agreement is void -Otherwise, the agreement is void - s. 4D(2)s. 4D(2) and theand theowner is guilty of an offence - owner is guilty of an offence - s. 4D(3)s. 4D(3)

Arab-Malaysian Finance Bhd v. Borneo Wood (Sabah) Arab-Malaysian Finance Bhd v. Borneo Wood (Sabah) Sdn Bhd & Ors.Sdn Bhd & Ors. [2008] 7 MLJ 834 where an agreement [2008] 7 MLJ 834 where an agreement which listed three goods cumulatively instead of item by which listed three goods cumulatively instead of item by item was held by the High Court to be void.item was held by the High Court to be void.

Where the good is a motor vehicle, the hirer may request Where the good is a motor vehicle, the hirer may request in writing to the owner to keep the in writing to the owner to keep the registration certificate registration certificate of the motor vehicleof the motor vehicle and the owner shall furnish the and the owner shall furnish the same to the hirer. Failing which, the owner commits an same to the hirer. Failing which, the owner commits an offence under the Act – offence under the Act – s. 4Es. 4E

13

A hire-purchase agreement relating to a motor vehicle A hire-purchase agreement relating to a motor vehicle shall be shall be voidvoid if the motor vehicle has been if the motor vehicle has been altered or altered or modifiedmodified in its construction and structure - in its construction and structure - s. 4Fs. 4F..

Where the good is a Where the good is a second-hand motor vehiclesecond-hand motor vehicle, the , the owner/dealer shall declare in writing any owner/dealer shall declare in writing any defectsdefects of the of the second-hand motor vehicle in accordance with the second-hand motor vehicle in accordance with the inspection report by the relevant authority determined by inspection report by the relevant authority determined by the Controller of Hire-Purchase - the Controller of Hire-Purchase - s. 4Gs. 4G

14

If there is any If there is any alteration or additionalteration or addition in the hire- in the hire-purchase agreement, the hirer must sign or initial the purchase agreement, the hirer must sign or initial the margin opposite to the alteration or addition to show margin opposite to the alteration or addition to show his consent thereto. If not, the alteration or addition his consent thereto. If not, the alteration or addition will have no effect -will have no effect - s. 39s. 39

The owner is required to The owner is required to serveserve on the hirer and the on the hirer and the guarantors a copy of the hire purchase agreement guarantors a copy of the hire purchase agreement within within 21 days21 days after it has been made – after it has been made – s. 5(1)s. 5(1)..

15

IMPLIED CONDITIONS AND WARRANTIESIMPLIED CONDITIONS AND WARRANTIES

The law implies certain conditions and warranties in every The law implies certain conditions and warranties in every hire purchase agreement -hire purchase agreement - s. s. 7(1)7(1)..

These are:-These are:-

(a) an (a) an implied warrantyimplied warranty that the hirer shall have and enjoy that the hirer shall have and enjoy quiet possession of the goods -quiet possession of the goods - s. s. 7(1)(a)7(1)(a)..

(b)(b) an an implied warrantyimplied warranty that the goods shall be free from any that the goods shall be free from any charge or encumbrance when the property in the goods is charge or encumbrance when the property in the goods is to pass-to pass- s. s. 7(1)(c)7(1)(c)..

16

(c)(c) an an implied conditionimplied condition that the owner has the right to sell that the owner has the right to sell the goods at the time when the property is to pass - the goods at the time when the property is to pass - s. s. 7(1)(b)7(1)(b). .

See: See: Krishnasamy a/l Supramany v. Arab-Malaysian Krishnasamy a/l Supramany v. Arab-Malaysian Finance BhdFinance Bhd [2009] 7 MLJ 455 where the issue before [2009] 7 MLJ 455 where the issue before the court was whether the defendant had a good title to the court was whether the defendant had a good title to the said car when the hire purchase agreement was the said car when the hire purchase agreement was entered into and whether they could give a good title to entered into and whether they could give a good title to the plaintiff. the plaintiff.

S. 7(2)S. 7(2) provides that there shall be an provides that there shall be an implied conditionimplied condition that the goods shall be of that the goods shall be of merchantable quality.merchantable quality.

17

Merchantable qualityMerchantable quality means that goods sold are means that goods sold are reasonably fit for the purpose for which they are required reasonably fit for the purpose for which they are required – the hirer has made known to the owner or dealer the – the hirer has made known to the owner or dealer the particular particular purposepurpose for which the goods are required. for which the goods are required.

Such condition Such condition shall not be impliedshall not be implied :- :-

where the hirer has examined the goods or a sample where the hirer has examined the goods or a sample thereof, as regards defects which the examination ought thereof, as regards defects which the examination ought to have revealed.to have revealed.

if the goods are if the goods are second-hand goodssecond-hand goods and the agreement and the agreement contains contains a statementa statement to the effect that – to the effect that –

the goods are second-hand;the goods are second-hand; all conditions and warranties as to quality are negatived;all conditions and warranties as to quality are negatived; the hirer has acknowledged in writing that he had been the hirer has acknowledged in writing that he had been

notified -notified - s. 7(2)(b)s. 7(2)(b)..

18

LIABILITY OF OWNER AND DEALER FORLIABILITY OF OWNER AND DEALER FORMISREPRESENTATIONMISREPRESENTATION

If the If the ownerowner made a misrepresentation in the course of made a misrepresentation in the course of negotiations leading to the hire purchase agreement, the negotiations leading to the hire purchase agreement, the hirer has the hirer has the right to rescind the agreement and sue right to rescind the agreement and sue for damagesfor damages – – s. 8(1)(a)s. 8(1)(a)..

Where the Where the dealerdealer has made a misrepresentation, the hirer has made a misrepresentation, the hirer cannot repudiate the agreement. He can only cannot repudiate the agreement. He can only sue for sue for damages damages – – s. 8(1)(b)s. 8(1)(b)

19

RIGHTS OF HIRERS – RIGHTS OF HIRERS – Sections 9-15Sections 9-15

Right of hirer to a statement relating to his financial Right of hirer to a statement relating to his financial position.position.

Right to appropriation of payments.Right to appropriation of payments. Right to apply to court for an Order for the goods to be Right to apply to court for an Order for the goods to be

removed to some other place.removed to some other place. Right of hirer to assign rights with consent of owner.Right of hirer to assign rights with consent of owner. Right to have title and interest passed by operation of the Right to have title and interest passed by operation of the

law – to PR of hirer or liquidator, if a co..law – to PR of hirer or liquidator, if a co.. Right to complete the purchase of the goods earlier than Right to complete the purchase of the goods earlier than

the due date.the due date. Right to terminate the Agreement – by returning the Right to terminate the Agreement – by returning the

goods.goods.

20

DUTIES OF HIRERSDUTIES OF HIRERS

The main duties of the hirer are as follows:-The main duties of the hirer are as follows:-

Goods must be stored in the place specified in the hire Goods must be stored in the place specified in the hire purchase agreement. purchase agreement.

To pay his instalments regularly. To pay his instalments regularly.

Given that the hirer has no title to the goods comprised Given that the hirer has no title to the goods comprised in the hire purchase agreement, he may not remove, in the hire purchase agreement, he may not remove, sell or dispose of any of the goods so as to defraud the sell or dispose of any of the goods so as to defraud the owner.owner.

21

REPOSSESSIONREPOSSESSION

The owner is entitled to The owner is entitled to recover possessionrecover possession of the goods of the goods when the hirer has committed a breach of his contractual when the hirer has committed a breach of his contractual obligations relating to the payment of instalments under obligations relating to the payment of instalments under the hire purchase agreement:- the hire purchase agreement:- ProvidedProvided::

the payment of instalments by the hirer must not exceed the payment of instalments by the hirer must not exceed 75% of the total cash price of the goods;75% of the total cash price of the goods;

the hirer has defaulted in 2 successive payment of the hirer has defaulted in 2 successive payment of instalments;instalments;

the owner has served on the hirer a the owner has served on the hirer a noticenotice in writing in in writing in the form set out in the the form set out in the Fourth Schedule Fourth Schedule of his intention of his intention to retake possessionto retake possession ( (Fourth Schedule noticeFourth Schedule notice); and); and

22

the period fixed by the notice must have expired and this the period fixed by the notice must have expired and this must not be less than must not be less than 21 days21 days after service of the notice - after service of the notice -S. 16(1)S. 16(1)

Pang Bros. Motor Sdn Bhd v. Lee Aik Seng Pang Bros. Motor Sdn Bhd v. Lee Aik Seng [1978] 1 [1978] 1 MLJ 179MLJ 179

In addition to sending out the In addition to sending out the Fourth Schedule noticeFourth Schedule notice and before repossession, the owner must send and before repossession, the owner must send another another noticenotice by registered post to the hirer not earlier than 14 by registered post to the hirer not earlier than 14 days after the service of the FSN to inform the hirer that days after the service of the FSN to inform the hirer that the owner intends to take possession of the goods – the owner intends to take possession of the goods – Regulation 3, Hire-Purchase (Recovery of Possession Regulation 3, Hire-Purchase (Recovery of Possession And Maintenance of Records By Owners) Regulations And Maintenance of Records By Owners) Regulations 1976.1976.

23

If the payment of instalments by the hirer amounts to If the payment of instalments by the hirer amounts to more than 75%more than 75% of the total cash price of the goods and of the total cash price of the goods and there has been 2 successive defaults of payment, the there has been 2 successive defaults of payment, the owner is required to obtain owner is required to obtain an order of the courtan order of the court before before taking possession of the goods – taking possession of the goods – s. 16(1A)s. 16(1A)

Where the owner has obtained an order of the court and Where the owner has obtained an order of the court and he has served on the hirer the Fourth Schedule Notice he has served on the hirer the Fourth Schedule Notice and after the expiry of twenty-one days from the service and after the expiry of twenty-one days from the service of the notice, the owner may exercise the power of of the notice, the owner may exercise the power of taking possession of goods - taking possession of goods - s. 16(1B)s. 16(1B)

Where the hirer is deceased, there has to be 4 successive Where the hirer is deceased, there has to be 4 successive defaults of payment of instalments before the owner defaults of payment of instalments before the owner takes possession of the goods - takes possession of the goods - s.16(1C)s.16(1C)

24

The person who undertakes repossession of the goods The person who undertakes repossession of the goods must obtain a must obtain a written permitwritten permit issued by the Controller of issued by the Controller of Hire-Purchase – Hire-Purchase – s. 17A & Bs. 17A & B

After taking possession of the goods, the owner must After taking possession of the goods, the owner must then personally deliver to the hirer a document then personally deliver to the hirer a document acknowledging receipt of the goods after having taken acknowledging receipt of the goods after having taken possession of the goods–possession of the goods– s. 16(4) & (5).s. 16(4) & (5).

Within 21 days after the owner had taken possession of Within 21 days after the owner had taken possession of the goods, he must serve on the hirer and guarantors a the goods, he must serve on the hirer and guarantors a notice in writing in the form set out in the notice in writing in the form set out in the Fifth Fifth ScheduleSchedule of the Act - of the Act - s. 16(3).s. 16(3).

25

Owner to retain goods for 21 days – s. 17Owner to retain goods for 21 days – s. 17

Where the owner has taken possession of the goods Where the owner has taken possession of the goods under s. 16, he cannot sell or dispose of the goods under s. 16, he cannot sell or dispose of the goods before the expiration of 21 days after the date of before the expiration of 21 days after the date of service on the hirer of the service on the hirer of the Fifth Schedule NoticeFifth Schedule Notice underunder s. 16(3)s. 16(3) – – s. 17(1)s. 17(1)

The owner must get the The owner must get the written consentwritten consent of the hirer if of the hirer if he wants to sell the goods before the expiration of the he wants to sell the goods before the expiration of the 21 days.21 days.

26

Hirer’s Rights and Immunities when Goods are Hirer’s Rights and Immunities when Goods are Repossessed – s. 18Repossessed – s. 18

Upon receipt of the Fifth Schedule Notice under s. 16 (3), the hirer may within 21 days give notice to the owner requiring the owner to:-

(a) Redeliver to him the goods that have been repossessed (subject to compliance by the hirer of the provisions of s. 19); or

(b) Sell the goods to any person introduced by the hirer who is prepared to buy for cash at a price not less than the estimated value of the goods set out in the notice - s. 18(1)(a)

27

Hirer to Regain Possession of the Goods – s. 19Hirer to Regain Possession of the Goods – s. 19

• The owner shall return the goods to the hirer if within 21 days after the hirer gives notice to the owner under s. 18(1)(a), the hirer :-

pays to the owner any amount due in respect of the period of hiring up to the date of the payment- s. 19(1)(a);

remedies any breach of the agreement - s. 19(1)(b); or where the owner has taken possession of the goods, pays

to the owner reasonable costs and expenses incurred by the owner in taking possession and of returning them to the hirer – s. 19(1)(c).

28

INSURANCE An owner is responsible to take insurance against any

risks he thinks fit in the name of the hirer : for motor vehicles – for the first year only, and for all other goods – for the duration of the hire-purchase

agreement – s. 26(1) For motor vehicles, the hirer is responsible to insure the

vehicle for the subsequent years – s. 26(2) An owner cannot force the hirer to buy insurance from

one particular insurer – s. 26(3) The hirer shall inform the owner at least 14 days before

the expiry of the insurance policy that he had renewed the said policy – s. 26(5). If he fails to do it, the owner is at liberty to insure the vehicle and the costs incurred shall be borne by the hirer – s. 26(6)

29

SPECIFIC TERMS & CONDITIONSSPECIFIC TERMS & CONDITIONS

Term charges - shall not exceed the rate fixed by the Term charges - shall not exceed the rate fixed by the Act. The maximum limit for term charges at a fixed Act. The maximum limit for term charges at a fixed rate is currently 10% per annum and for term charges rate is currently 10% per annum and for term charges at a variable rate is 17% p.a. at a variable rate is 17% p.a. ((Hire-Purchase (Terms Hire-Purchase (Terms Charges) Regulations 2005)Charges) Regulations 2005)

The hirer shall have an option for the term charges to The hirer shall have an option for the term charges to be at a fixed rate or at a variable rate where the be at a fixed rate or at a variable rate where the charges will be quoted at a margin percentage above charges will be quoted at a margin percentage above the base lending rate the base lending rate - - S. 6AS. 6A

30

• Booking FeeBooking Fee – – S. 30AS. 30A

• No owner or dealer shall collect a booking fee from No owner or dealer shall collect a booking fee from an intending hirer before receipt of the duly an intending hirer before receipt of the duly completed form set out in Form II of the Second completed form set out in Form II of the Second Schedule by the hirer.Schedule by the hirer.

• The booking fee shall not exceed 1% of the cash The booking fee shall not exceed 1% of the cash

price of the goods and it shall form part of the deposit price of the goods and it shall form part of the deposit in respect of the goods.in respect of the goods.

• Upon withdrawal of the booking, the owner shall Upon withdrawal of the booking, the owner shall refund 95% of the booking fee to the intending hirer.refund 95% of the booking fee to the intending hirer.

31

• Minimum depositsMinimum deposits - The minimum deposit in cash - The minimum deposit in cash and/or in goods shall not be less than 10% of the cash and/or in goods shall not be less than 10% of the cash price of the goods. The maximum financing under hire-price of the goods. The maximum financing under hire-purchase is therefore 90% of the cash price of the goods purchase is therefore 90% of the cash price of the goods -- s. 31s. 31

• Interest on overdue loan instalmentsInterest on overdue loan instalments – currently interest – currently interest is charged at a rate of 8% per annum for term charges at is charged at a rate of 8% per annum for term charges at a fixed rate or 2 % above the prevailing rate for term a fixed rate or 2 % above the prevailing rate for term charges at a variable rate at simple interest calculated on charges at a variable rate at simple interest calculated on a daily basis –a daily basis – s. 34(c)s. 34(c)