Singapore legislation

Clause 3

Requirements relating to hire-purchase agreements

(1)

Before a hire-purchase agreement is entered into in respect of any goods, the owner shall give or cause to be given to the prospective hirer a written statement duly completed in accordance with the form set out in the Second Schedule to this Act.

(2)

Where a hire-purchase agreement is entered into by way of acceptance by the owner of a written offer signed by or on behalf of the hirer, the provisions of subsection (1) of this section shall be deemed not to have been complied with unless the written statement was given to the prospective hirer before the written offer was signed.

(3)

Every hire-purchase agreement —

(a)

shall be in writing;

(b)

shall be signed by or on behalf of the hirer and all other parties to the agreement;

(c)

shall —

(i)

specify a date on which the hiring shall be deemed to have commenced;

(ii)

specify the number of instalments to be paid under the agreement by the hirer;

(iii)

specify the amounts of each of these instalments and the person to whom and the place at which the payments of these instalments are to be made;

(iv)

specify the time for the payment of each of those instalments;

(v)

contain a description of the goods sufficient to identify them;

(d)

shall, where any part of the consideration is or is to be provided otherwise than in cash, contain a description of that part of the consideration; and

(e)

shall set out in a tabular form —

(i)

the price at which at the time of signing the agreement the hirer might have purchased the goods for cash (hereinafter in this Act referred to and in the agreement to be described as “cash price”);

(ii)

the amount paid or provided by way of deposit (hereinafter in this Act referred to and in the agreement to be described as “deposit”) showing separately the amount paid in cash and the amount provided by any consideration other than cash;

(iii)

any amount included in the total amount payable to cover the expenses of delivering the goods or any of them or to the order of the hirer (hereinafter in this Act referred to and in the agreement to be described as “freight”);

(iv)

any amount included in the total amount payable to cover vehicle registration fees in respect of the goods (in the agreement to be described as “vehicle registration fees”);

(v)

any amount included in the total amount, payable for insurance in respect of the goods or any of them;

(vi)

the total of the amounts referred to in subparagraphs (i), (iii), (iv) and (v) of this paragraph less the deposit;

(vii)

the amount of any other charges included in the total amount payable (hereinafter in this Act referred to and in the agreement to be described as “terms charges”);

(viii)

the total of the amounts referred to in subparagraphs (vi) and (vii) of this paragraph (hereinafter in this Act referred to as the “balance originally payable under the agreement”); and

(ix)

the total amount payable.

(4)

An owner who enters into a hire-purchase agreement that does not comply with the provisions of subsection (3) of this section shall be guilty of an offence under this Act.

Read in full context — Hire-Purchase Bill →