Get Hire Purchase Application Form

A hire purchase agreement is like a loan, except the seller sells and gives you the item you want to buy, instead of lending you the money. If you stop paying before you've paid the item off, the seller can take it back and keep all the money you've already paid.

(1) The hirer under a hire-purchase agreement or the buyer under a conditional sale agreement may give notice in writing to the owner or seller of his intention to complete the purchase of the goods by paying or tendering to the owner or seller on a specified day the net balance due under the agreement, and having ...

There are two main types of hire purchases based on the functional purpose of the asset involved. These types are the consumer and industrial hire purchase agreements.

Hire purchase is an arrangement for buying expensive consumer goods, where the buyer makes an initial down payment and pays the balance plus interest in installments. The term hire purchase is commonly used in the United Kingdom and it's more commonly known as an installment plan in the United States.

Features of Hire Purchase Agreement The owner delivers possession of goods to a person on the condition that such person pays the agreed amount in periodic instalments. property in the goods passes to such person upon payment of the last instalment.

A hire purchase (HP) agreement is a credit agreement. You hire an item (for example, a car, laptop or television) and pay an agreed amount in monthly payments. You do not own the item until you have made the final payment. Personal Contract Plans (PCPs) are a type of hire purchase agreement.

In the hire purchase agreement, the contract is basically between two parties viz. the hire-purchaser and the hire-vendor and sometimes there is an involvement of a third party that is the financer.