Rent-to-Own Terms and Conditions

DEFINITIONS

"Product" : Shall mean products bearing the Kommu Brand.

"Customer" : Shall mean the person or organization that purchases or rents the Product (to include its heir, executor, administrators, successors in title and assignments).

“Kommu" & “KOMMU” :Shall mean Kommu Sdn Bhd.

“Kommu Authorized Technicians" : Shall mean: (1) Authorized representatives of Kommu; (2) Authorized Technicians/Trained technical personnel; or (3) Appointed authorized and trained technical personnel within Customer region; or (4) Kommu service technicians or third party service providers whom are contracted with Kommu to provide product installation, repair and maintenance services under this Contract.

“Services” : Shall mean installation, repair and maintenance services of the Product. The Services are only applicable for selected Product Models only; which includes “KommuAssist” and all their generations and derivatives (i.e. cables, peripheral components).

"Location" : Shall mean the Installation Address limited within Malaysia subject to approval of Kommu.

1.     RENTAL TERM

3 Years: This Contract shall commence from the date when the Product is installed after the receipt of the Initial Deposit, for a period of three (3) years (“Rental Period”) and unless otherwise terminated as stated in Clause 3 and Clause 11 in this Agreement.

Initial Deposit: This is the total amount equal to 12 months' worth of the Monthly Rental Fee (“MFR”) as stated in Clause 2 below. The Initial Deposit collected prior to the Credit approval and installations shall be served for end tenure rental fees which is equivalent to the last twelve (12) months of Rental Period of the total tenure of thirty six (36) months. It shall not be used as any form of reimbursement of outstanding payment before the end tenure of Rental Period.

Expiry of Rental: Upon the expiry of the Rental Period, Kommu shall discontinue the 3-year Product warranty and Customer shall own the Product. The Customer shall have the option in signing a new extended warranty Contract with Kommu to continue with maintenance services, subject to charges being imposed.

Kommu reserves the right to charge the Customer for any loss or damage arising out of improper use of the Product or for performing unauthorized services on the Product. The Customer shall be responsible to settle the full tenure (3 years) product rental fees in the event the product is remarked as lost regardless due to any reason (inclusive and not limited to natural disaster/ theft/ Fire etc).

The Product remains the property of Kommu during the Rental Period. The Customer shall not under any circumstances attempt to dismantle, repair, undertake maintenance work or replace parts of the Product.

Strictly no Product upgrade and/or change of models will be allowed once payment and/or installation has been made.

2.     INSTALLATION, INITIAL DEPOSIT AND MONTHLY RENTAL FEE PAYMENT:

a) Installation of the Product is subject to Kommu having verified the Customer’s credibility and any other information provided by the Customer as may be necessary, including but not limited to photocopy of Malaysia Identity Card (IC), payment details, Customer residential address etc.

b) Installation appointment or shipping of the Product is subject to the complete payment of the Initial Deposit.

c) The Customer hereby agrees that payment shall be by way of direct debit or auto debit of the Customer’s credit or debit card or bank accounts or any other mode of payment approved by Kommu from time to time and as agreed upon under this Contract. The Customer shall ensure they have sufficient balance in their credit card limit or bank accounts to fulfil the Monthly Rental Fee payment.

d) In the event of Rental default in any particular rental month (“Rental Default”), the sum of Initial Deposit paid will be forfeited after ninety (90) days of first Rental Default date.

In the event there appears to be any outstanding on rental payment of more than three (3) months, Kommu shall have the absolute right to terminate the Product rental service and repossess the Product by any means. The Customer shall be liable to return the device and the forfeiture of the Initial Deposit shall become effective immediately.

Kommu shall not be held responsible for any issues caused by delayed payment of rental fees exceeding the agreed upon terms.

If Kommu does not receive full payment and/or the Monthly Rental Fee from the Customer due to insufficient balance from the Customer's credit card or bank account on the payment due date, Kommu shall have the option to use third-party means, which shall include listing the Customer with a Credit Reporting Agency (CRA), collection agencies, and commencing legal proceedings. Kommu shall also be entitled to appropriate a sufficient amount from the Customer's bank account to fulfill the amount due to Kommu at a later date. There may be more than one attempt to charge payment to the Customer's credit/debit card account to ensure that the Monthly Rental Fee (“MRF”) due to Kommu is paid in full.

Actions taken for overdue:

Month in Default Collection Recovery Schedule
1 MRF Default
  • First Reminder Notice - formal written notice detailing the default with thirty (30) days to remedy the issue will be sent within three (3) working days of MRF payment default date.
2 MRF Default
  • Second Reminder Notice - formal written notice detailing the two (2) MRF default will be sent within three (3) working days of the second MRF payment default date.
  • The Customer will be provided an additional thirty (30) days to remedy the issue from the date of Second Reminder Notice.
  • Suspension of Product Features - all software features and services of the Product will be suspended with immediate effect on the date of second MRF Default.
3 MRF Default
  • Legal Proceedings and Secure Product(s) Repossession - Upon third MRF default, Kommu has the right to repossess the hardware product without further notice.
  • Repossession should be carried out in a manner that respects the customer’s rights and avoids any claims of unlawful entry or coercion. The company should ensure that all actions are in accordance with local laws, possibly obtaining a court order if required by law.
  • Forfeiture of Initial Deposit - Initial Deposit or prepayments are applied toward outstanding fees or termination charges upon Product repossession.
  • Credit Reporting Agency Listing.
  • Termination of Rental Services & Agreement.

e) The Customer hereby authorizes Kommu, at any time, to process (including but not limited to access, obtain, verify, and/or use) any data or information from any source (including but not limited to credit reference agencies, credit reporting agencies (CRA), Bank Negara Malaysia (BNM), any credit bureau, and/or Central Credit Reference Information System (CCRIS) and such relevant authorities) together with CTOS Data Systems Sdn Bhd for the purposes of disclosing any such credit information of Customer to Kommu in order to allow Kommu to process Customer's credit information to determine Customer's credit standing in relation to entering into this Contract.

f) i. If the Customer is a company limited by shares, the Customer shall ensure that the Customer's minimum paid-up capital shall be maintained at a sum no less than the amount equivalent to 36 months Monthly Rental Fee throughout the Rental Period.

ii. In the event that the Customer's paid-up capital is less than the amount specified in paragraph [f.(i)] above and if deemed necessary by Kommu, or if otherwise deemed necessary by Kommu, the Customer shall simultaneously with the execution of this Contract cause such person(s), usually a director of the Customer to execute and deliver a Letter of Guarantee and Indemnity in favour of Kommu pertaining to the Rental of the Product upon such terms and conditions as may be stipulated by or acceptable to Kommu and at the costs and expenses of the Customer.

g) Despite any unforeseeable events that may occur which are beyond the control of Kommu and Customer, Customer shall still be liable to pay the Rental in a timely manner. In any event, Customer may choose to extend the Rental Period subject to mutual agreement between Customer and Kommu.

3.     EARLY TERMINATION FEE

i. In the event the Customer decides to terminate this Contract during the Rental Period, the Customer shall pay a termination fee (“Termination Fee”) amount equivalent to 100% of the total sum of Monthly Rental Fee for twelve (12) months. The Customer’s Initial Deposit will be used to serve the Termination Fee to end the rental tenure and terminate this agreement.

ii. Early termination by the Customer shall deem to be effective upon return of the Product; and the Customer's minimum paid-up capital shall be maintained at a sum no less than the amount equivalent to 12 months for the 3 years rental term.

iii. Any termination by the customer after installation automatically triggers the early termination fee without contest.

4.     COOLING-OFF PERIOD

This Agreement is subject to a cooling-off period of ten (10) days. Unless a written consent is provided by the Customer to Kommu requesting to waive the cooling-off period for immediate purchase and installation of the Product. Any waiver or termination request after Product installation is strictly non-refundable.

5.     INSTALLATION CONDITIONS

Kommu shall only install the Product upon:
a) Confirmation of receipt of payment and Initial Deposit;
b) Kommu having confirmed the availability of the Customer to install the Product.
c) No payments or partial payments will be refunded to Customer for any fees/payment paid after installation of the Product;
d) Kommu Authorized Technicians or Kommu authorized service providers may impose additional charges for installation on selected Product.
e) Re-installation of Product shall be provided by Kommu at its sole discretion as per following:-
f) For customers who are within the Rental Period, Kommu shall provide a one (1) time free re-installation (strictly within our Location) per year:

i) For Customers who are not within the Rental Period, the Customer shall pay re-installation charges as advised by Kommu. Fee is subject to change from time to time as advised by Kommu.

ii) In any event, Customers who dismantle and bring the Product to new location without informing Kommu, shall bear the re-installation fee which includes both transportation and labor costs. Fee is subject to change from time to time as advised by Kommu.

iii) Kommu shall impose further charges relating to replacement of parts during re-installation (if applicable).

6.     WARRANTY AND DISCLAIMER

a) Kommu warrants that the Product is free from material and workmanship defects under ordinary use of the Product.

b) EXCEPT AS EXPRESSLY SET FORTH HEREIN (AND EXCEPT AS MAY BE REQUIRED BY LAW), Kommu EXPRESSLY DISCLAIMS ALL REPRESENTATIONS AND WARRANTIES, EXPRESSED OR IMPLIED, IN CONNECTION WITH THE MARKS AND THIS CONTRACT, INCLUDING, WITHOUT LIMITATION, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. ALL MATERIALS PROVIDED HEREUNDER ARE PROVIDED AS IS AND WITH ALL FAULTS.

c) Kommu cannot and shall not be held liable for any damage, injuries, death, or any consequential damage of whatsoever nature to any person or property, by use or operation of the Product. Kommu shall not be responsible for any damage caused to the Product due to riot, theft, accident, breakage, improper or negligent use, tampering, car voltage fluctuations etc.

d) Kommu and Kommu Authorised Technicians shall not be liable for any alleged defect or malfunction of the Product during the Rental Period due to the Customer's failure to notify on the alleged defects or malfunction.

e) In event of defects due to defects in performance or defects of the Product subject to maintenance service, exchange or return is possible subject to Kommu discretion and regulations.

f) Kommu will not in any way be responsible for any loss and/or damages towards the Product or incident led by the Product without any written confirmation by Kommu authorized person in charge after the cooling-off period.

7.     MAINTENANCE SERVICES CONDITIONS:

a) Kommu shall reasonably endeavor to assure that any and all maintenance and servicing of the Product is performed by a professional and reasonably skilled technician with a reasonable standard of care and diligence.

b) The liability of Kommu shall be limited to providing services and replacing parts as covered by this Contract and Kommu shall not be liable for any damage, injuries, death, or any consequential damage of whatsoever nature to any person or property, by use or operation of the Product. Kommu shall not be responsible for any damage caused to the Product due to riot, theft, accident, breakage, improper or negligent use, tampering, car voltage fluctuations etc.

The customer is obligated to adhere to scheduled maintenance appointments, and specify that failure to do so will not exempt them from payment obligations or liability for damages caused by deferred maintenance.

c) Kommu shall perform maintenance services, such as part replacement as stated herein, upon Customer request for the Product used by the Customer during the term of the Contract. However, if the Customer delays appointment for maintenance due to the circumstances of the Customer, or if the Customer delays the Monthly Rental Fee for more than three (3) months from its scheduled period, the maintenance service will be discontinued until the cause is resolved.

d) Kommu shall not be liable for problems caused by discontinuance or delay of maintenance service by the Customer.

e) Ordinary wear and tear of the product is to be expected.

8.     KOMMU NON-RETURN POLICY

Under the following conditions Product are NON-RETURNABLE:-

i) The Product was rented or purchased for someone else who simply does not want it;

ii) The Product has no defects. Customer changed his/her mind because of wrong selection, color, size, model or specification, Product not meeting expectation, and/or Customer simply doesn't want it anymore.

iii) The Product shall be non-returnable once installation is completed.

iv) The advance payments and Initial Deposit collected prior to the Credit approval and installations shall be served for end tenure rental fees which equivalent to the last twelve (12) months of rental period of the total tenure of thirty six (36) months. It shall not be used as any form of reimbursement of outstanding before the end tenure of rental period.

v) The advance payments and Initial Deposit are non-refundable once installation is completed and non-refundable before the completion of full tenure of the Rental Period. When early termination exists, the Initial Deposit will be used to serve the Termination Fee stated in Clause 3.

9.     REFUND

a) Prepayment made by the Customer in respect of Product price, rental processing fee, Monthly Rental Fee and Initial Deposit is refundable PROVIDED that the order is cancelled by Customer in writing before the installation of the Product, i.e. within the Cooling-Off period.

b) Upon receipt of such written notification by the Customer, Kommu will process for refund within sixty (60) days from receipt of notice of cancellation by the Customer.

10.     CANCELLATION OF THIS CONTRACT

Kommu shall cancel this Contract if in the event, the Product is found not suitable to be installed at the Customer’s car due to car incompatibility. In such instances, the monies paid by the Customer shall be refunded in full by Kommu as per clause 9 (b) above.

11.     TERMINATION

a) Kommu reserves the right to terminate this Contract at any time during the Term and retrieve the Product under the following circumstances:-

i. Abnormal usage of the Product, transfer and/or sublease of Product, unauthorized modification of the Product;

ii. The monthly payment has been overdue for three (3) months or more,

iii. Breach of any terms of this Contract.

No services and/or maintenance services will be provided by Kommu Authorized Technicians once any of the above situations occurs.

b) Customers who terminate this Contract but prior to expiration of the Term are not allowed to enter into another Contract on rental terms with Kommu for a period of three (3) months after such termination.

12.     DISPUTE RESOLUTION

Faith Negotiation: In the event of any dispute, controversy, or claim arising out of or relating to this Agreement, including its formation, breach, termination, enforcement, or interpretation, the parties shall first attempt to resolve the matter amicably by engaging in good faith negotiations for a period of no less than thirty (30) days.

Mediation: If the dispute remains unresolved after the negotiation period, the parties agree to submit the dispute to mediation. The mediation shall be conducted by a mediator mutually agreed upon by the parties. If the parties cannot agree on a mediator, the mediator shall be appointed in accordance with the rules of Malaysian International Mediation Centre (“MIMC”). The mediation process shall be confidential and conducted in Malaysia (or another agreed location).

Arbitration: Should mediation fail to resolve the dispute within a further period of thirty (30) days, the dispute shall be finally settled by binding arbitration. The arbitration shall be administered by Asian International Arbitration Centre (Malaysia) (“AIAC”) in accordance with its arbitration rules, which are deemed to be incorporated by reference into this clause. The arbitration proceedings shall be held in Malaysia and conducted in English or Bahasa Malaysia. The arbitrator's decision shall be final and binding upon both parties, and judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction thereof.

Governing Law and Jurisdiction: This Agreement and any dispute arising out of or in connection with it shall be governed by and construed in accordance with the laws of Malaysia. Notwithstanding the foregoing, any interim or injunctive relief sought by a party may be obtained from a court of competent jurisdiction in Malaysia.

Costs: Each party shall bear its own costs and expenses incurred in connection with the negotiations, mediation, and arbitration; however, the arbitrator may, in their discretion, award costs, including attorney fees, to the prevailing party.

13.     PERSONAL DATA / PERSONAL INFORMATION

a) Kommu shall comply with all laws and regulations related to the Personal Data Protection Act 2010 ("PDPA"). Upon signing of this Contract, the Customer acknowledges that the Customer has read and understood Kommu Privacy Policy provided under the Privacy Notice and agrees to the processing of the Customer's personal data as set out in the Privacy Notice which can be viewed at kommu.ai/privacy.

b) Kommu's privacy notice is enacted separately and it is protecting the personal information of the Customer how this information will be shared within Kommu related companies, affiliates, contractors, vendors or service providers for the purposes of operation and maintenance of the Products, for cross-promotional purposes and to otherwise provide customer support and services to you and our respective employees. Kommu shall inform Customer of the purpose and method of collecting and using its personal information through the personal information processing policy and the measures taken by the Kommu to protect Customer's personal information. This personal information processing policy may be changed according to the amendment of related laws or the Kommu's policy, which is updated on Kommu's website without any prior notice to the Customer.

c) The Customer must inform Kommu in writing of any changes or amendments to the Customer's personal details as soon as possible.

d) Kommu will not be held responsible for any issue that arises from the Customer's failure to comply with Clause 13(c) herein. This shall also include Customer's obligation to inform Kommu in writing in the event of any changes or amendment to his/her credit/debit card details, personal details (address, telephone, etc.) and Kommu shall not be responsible for any issues arising from Customer's failure to do so.

14.     KOMMU'S RIGHTS

The Customer hereby acknowledges and agrees that Kommu shall in its absolute discretion be at liberty to sell, transfer, dispose of, assign and/or novate this Contract and/or the Product to or in favour of any other party(ies) provided always that such dealings shall not affect this Contract herein save and except where the change of owner in respect of this Contract and/or the Product, the other party(ies) shall take over all obligations of Kommu hereunder.

15.     MISCELLANEOUS

a) This Contract shall be governed by the Laws of Malaysia.

b) Time wherever mentioned shall be deemed to be the essence of this Contract.

c) The Product provided to the Customer under the rental scheme shall remain the property of Kommu. Upon the expiry of the Rental Period, Kommu shall discontinue the 3-year Product warranty and Customer shall own the Product. The Customer shall have the option in signing a new extended warranty Contract with Kommu to continue with maintenance services, subject to charges being imposed.

d) All other related terms and conditions as outlined in the product user manual and at kommu.ai shall apply.

e) No liability shall attach to Kommu either in contract or in tort for loss, injury or damage sustained by reason of any defect in the goods whether such defect be intent or apparent on examination and Kommu shall not be liable to indemnify the Customer in respect of any claims made against the Customer by a third party for any such loss, injury or damage.

f) This Contract may be signed using electronic signatures. Authorized signatory must be the Director of the company and/or authorised representative supported by a written letter from the Director. The Customer's electronic signature on any of the electronic documents, including this Contract, will bind the Customer to that document the same way as if it had been signed on a paper copy of the document with an ink pen. The Customer shall not contest the validity or enforceability of any electronic document received or electronically signed because the document and signature are in electronic form. The Customer hereby agrees to immediately notify Kommu if the Customer receives any electronic document or information that appears to be in error or not intended for Customer.

g) This agreement shall supersede any and all prior written and oral agreements made prior to this Agreement. In executing this Agreement, the Customer is not relying upon any promise, representation, term or statement not embodied within this Agreement. Kommu's representatives shall have no right to enter into any settlement or special agreement with the Customer other than as stated in this Agreement. Any amendments to the contract (including termination fees or repossession procedures) must be mutually agreed in writing.

h) Kommu does not collaborate with any NGO, corporate companies and/or any third parties to provide donations, payment for on behalf and/or partial fees support to End Consumer/Customer.

i) Customers shall bear the full responsibility of the purchased Product despite it being Outright or Rental units.

j) Terms and prices mentioned herein may not be applicable and/or vary for Products under promotional that is conducted from time to time. Such terms will be provided during the said promotional period.

k) Kommu reserves the right to change any terms herein from time to time without prior notice.