Hong Kong Regulations

THE RULES OF THE HIGH COURT - ORDER 84A

ACTIONS ARISING OUT OF HIRE-PURCHASE OR CONDITIONAL SALE AGREEMENTS

(Past version on 30/06/1997).

Adaptation amendments retroactively made - see 25 of 1998 s. 2 (HK) ORDER 84A

ACTIONS ARISING OUT OF HIRE-PURCHASE OR CONDITIONAL SALE AGREEMENTS

1. Application and interpretation (O. 84A, r. 1)

(1) These rules apply to actions to which this Order applies subject to the
following Order.

(2) This Order applies to any action arising out of a hire-purchase agreement
or a conditional sale agreement brought against the hirer or buyer of the
goods to which the agreement relates or a guarantor, if the writ beginning
the action is indorsed with a claim for money, not being-

   (a)  a claim for unliquidated damages, or

   (b)  a claim for no more than the amount of any instalment or instalments
        of the hire-purchase price or total purchase price, as the case may
        be, which is due and unpaid.

(3) (a) In this Order- "hire-purchase agreement" (租購協議) means an
agreement for the bailment of goods under which the bailee may buy the goods,
or under which the property in the goods will or may pass to the bailee;
"conditional sale agreement" (有條件售賣協議) means an agreement for
the sale of goods under which the purchase price or part of it is payable by
instalments, and the property in the goods is to remain in the seller

(notwithstanding that the buyer is to be in possession of the goods) until
such conditions as to the payment of instalments or otherwise as may be
specified in the agreement are fulfilled; "contract of guarantee"
(擔保合約), in relation to a hire-purchase agreement, credit-sale
agreement or conditional sale agreement, means a contract, made at the request
(express or implied) of the hirer or buyer, either to guarantee the
performance of the hirer's or buyer's obligations under the hire-purchase
agreement, credit-sale agreement or conditional sale agreement, or to
indemnify the owner or seller against any loss which he may incur in respect
of that agreement, and "guarantee" (擔保) shall be considered accordingly;
"buyer" (買方) in relation to a conditional sale agreement, means the person
who agrees to purchase goods under the agreement and includes a person to whom
the rights or liabilities of that person under the agreement have passed by
assignment or by operation of law; "hire-purchase price" (租購價) (subject
to sub-paragraph (b)) means the total sum payable by the hirer under a
hire-purchase agreement in order to complete the purchase of goods to which
the agreement relates, exclusive of any sum payable as a penalty or as
compensation or damages for a breach of the agreement; "total purchase price"
(總買價) (subject to sub-paragraph (b)) means the total sum payable by the
buyer under a credit-sale agreement or a conditional sale agreement, exclusive
of any sum payable as a penalty or as compensation or damages for a breach of
the agreement; "hirer" (租用人) means the person who takes or has taken
goods from an owner under a hire-purchase agreement and includes a person to
whom the hirer's rights or liabilities under the agreement have passed by
assignment or by operation of law; and "goods" (貨品), "buyer" (買方)
(except in relation to a conditional sale agreement) have the meanings
assigned to them respectively by the Sale of  Goods Ordinance ( Cap 26).

   (b)  For the purposes of this Order, any sum payable by the hirer under a
        hire-purchase agreement, or by the buyer under a conditional sale
        agreement, by way of a deposit or other initial payment, or credited
        or to be credited to him under the agreement on account of any such
        deposit or payment, whether that sum is to be or has been paid to the
        owner or seller or to any other person or is to be or has been
        discharged by a payment of money or by the transfer or delivery of
        goods or by any other means, shall form part of the hire-purchase
        price or total purchase price, as the case may be.

2. Particulars to be included in statement of claim (O. 84A, r. 2)

Every statement of claim in an action to which this Order applies (whether
indorsed on the writ or not) must state the circumstances in which the claim
mentioned in rule 1(2) arises.

3. Judgment on failure to give notice of intention to defend or in default of
defence (O. 84A, r. 3)

(1) In an action to which this Order applies judgment on failure to give
notice of intention to defend or in default of defence shall not be entered
except with the leave of the Court.

(2) (a) An application for the grant of leave under this rule must be made by
summons supported by an affidavit which must-

        (i)    give the particulars required by rule 2; and

        (ii)   exhibit a true copy of the hire-purchase or conditional sale
               agreement, the original of which must be produced at the
               hearing of the summons.

   (b)  The summons and a copy of the affidavit in support and of any exhibits
        referred to therein must, notwithstanding anything in Order 65, rule
        9, be served on the defendant not less than 4 clear days before the
        day fixed for the hearing of the summons.

(3) If the application is for leave to enter judgment on failure to give
notice of intention to defend, the summons shall not be issued until after the
time limited for acknowledgment of service of the writ.

(4) The plaintiff must produce to the Court hearing an application for the
grant of leave under this rule the hire-purchase or conditional sale agreement
to which the action relates.

(5) Unless the Court hearing such application grants leave to enter judgment
for the amount claimed or, having power to do so, transfers the  action to a
District Court, it shall (whether or not the defendant appears on the hearing)
try the action. (Enacted 1988) "hire-purchase agreement" (租購協議)
"conditional sale agreement" (有條件售賣協議) "contract of guarantee"
(擔保合約) "guarantee" (擔保) "buyer" (買方) "hire-purchase price"
(租購價) "total purchase price" (總買價) "hirer" (租用人) "goods"
(貨品), "buyer" (買方)