Are you in the market for a new car or perhaps some home renovations? A hire purchase agreement in Malaysia may be just what you need. This type of agreement allows you to purchase an item on credit and pay it off over time through monthly instalments.
Before diving into a hire purchase agreement, it`s important to understand the basics. In Malaysia, a hire purchase agreement is a legal contract between a buyer (hirer) and a seller (owner) for the purchase of an asset, such as a car or home renovation. The hirer pays a down payment and agrees to pay the remaining balance in instalments over a specified period.
To help you get started, here is a sample hire purchase agreement tailored to the Malaysian market:
[Insert name of owner/seller]
[Insert address of owner/seller]
[Insert name of hirer]
[Insert address of hirer]
Agreement Overview:
This hire purchase agreement (the «Agreement») is entered into on [insert date] by and between [insert name of owner/seller] (hereinafter referred to as «Owner») and [insert name of hirer] (hereinafter referred to as «Hirer»).
Asset:
The asset being purchased under this Agreement is a [insert description of asset] (the «Asset»).
Purchase Price:
The purchase price of the Asset is [insert amount] (the «Purchase Price»).
Down Payment:
The Hirer shall make a down payment of [insert amount] (the «Down Payment») to the Owner upon the execution of this Agreement.
Instalment Payments:
The balance of the Purchase Price shall be paid in instalments of [insert amount] (the «Instalment Amount») per month for a period of [insert number of months] (the «Instalment Period»).
Interest:
The Hirer shall pay [insert interest rate] (the «Interest Rate») per annum on the outstanding balance due under this Agreement.
Default:
In the event of a default by the Hirer in making any of the instalment payments, the Owner shall have the right to repossess the Asset and retain any payments received by the Hirer up to that point as liquidated damages.
Entire Agreement:
This Agreement constitutes the entire agreement between the parties and supersedes all prior negotiations, representations and understandings, whether oral or written.
Governing Law:
This Agreement shall be governed by and construed in accordance with the laws of Malaysia.
With this sample hire purchase agreement, you can now take the next step towards purchasing that asset you desire. Just remember to always read and understand the terms and conditions of any agreement before signing on the dotted line.