Lawrence Car Services is an importer and dealer of luxury cars and they received an order from Jitu Sdn Bhd for a Rolls Royce to be imported into this country. Jitu Sdn Bhd then obtained finance from Bank Bernas Bhd for the purchase of the said car. Bank Bernas Bhd purchased the Rolls Royce from Lawrence Car Services to be let to the Jitu Sdn Bhd. Bank Bernas Bhd and Jitu Sdn Bhd then executed a hire purchase agreement. The hire purchase agreement, among others, provided that: Clause 4(b): It is the duty of the importer or dealer to ensure all requirements as to duties and taxes are complied with. Clause 5(a): The importer or dealer shall act as an agent to the hirer. Clause 11(c): The hirer shall indemnify the owner against the destruction or loss of goods, which may include lawful forfeiture by relevant authorities. The Rolls Royce was seized by the officers of the Malaysian Royal Customs for failure to make payments of the actual duty and tax payable on the Rolls Royce. Jitu Sdn Bhd subsequently defaulted in paying the instalments due under the hire purchase agreement. Bank Bernas Bhd brought an action against Jitu Sdn Bhd to recover the sums due under the said hire purchase agreement. However, Jitu Sdn Bhd defended the action claiming that the hire purchase agreement had been frustrated due to the car seizure by the Malaysian Royal Customs.

Based on Contract Law in Malaysia, With reference to the relevant legal authorities, advise the parties involved whether the hire purchase agreement is frustrated. (20 marks)