Hong Kong Regulations

THE RULES OF THE DISTRICT COURT - ORDER 84A

ACTIONS ARISING OUT OF HIRE-PURCHASE OR CONDITIONAL SALE AGREEMENTS

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

(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-

"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;

"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;

"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);

"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;

"hire-purchase price" (租購價), subject to subparagraph (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;

"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;

"total purchase price" (總買價), subject to subparagraph (b), means the
total sum payable by the buyer under a conditional sale agreement, exclusive
of any sum payable as a penalty or as compensation or damages for a breach of
the agreement.

   (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
the Court of First Instance, it shall (whether or not the defendant appears on
the hearing) try the action.