Question
Ella went to Modern Home Enterprise (MHE) which sells various household products. She wanted to get a dining table, a bedroom set, a washing machine,
Ella went to Modern Home Enterprise (MHE) which sells various household products. She wanted to get a dining table, a bedroom set, a washing machine, and a refrigerator. The sales manager of MHE suggested that she pays for the goods by instalments and for that purpose, signs a hire-purchase agreement. MHE asked Ella to sign a blank hire-purchase agreement and told her that the details will be filled in later. When she asked how much she has to pay for the instalments every month and the duration of the hire-purchase agreement, the sales manager explained to her verbally. She was asked to pay a minimum deposit of 20% for all the goods. She signed the agreement and was told that the goods will be delivered the next day. On the next day, Ella received the goods with a copy of the agreement. She was surprised to see the amount she has to pay for the monthly instalments and the duration of hire-purchase stated in the hire-purchase agreement are different than that explained to her before she signed the agreement. Ella is uncertain as to the validity of the hire-purchase agreement.
Advise Ella on the above situation by applying the Hire-Purchase Act 1967 and relevant cases
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