HIRE & PURCHASE AGREEMENT (HPA) is a contract whereby the movable property or goods are delivered on hire to the consumer i.e. hirer with an option to buy the same. The legal position of the HPA is that the ownership or title to the goods vests in the owner and passes only upon the option of purchase is exercised by the purchaser.
This mercantile service is a usual practice of the Financial, Leasing and Banking companies who intervene between the manufacturer/dealer and the consumer in need of the goods but lacking proper funds.
Being well and perfectly aware of the provisions contained in the Indian Contract Act 1872 and Sale of Goods Act 1932 and Hire Purchase Act 1972 a law firm prepares a HPA covering the hire purchase price, cash price of the goods, commencement date of agreement, the number and amount, the date of payment of instalments, proper description of the goods, warranties, conditions, limitations on the hire purchase charges, passing of title to the goods, the rights and obligations of the hirer and the owner.
Types of HPA:
- Agreement for hire.
- Hire Purchase Agreement;
- Hire Purchase Agreement for Securing Finance with Guarantee.
- Hire Purchase Agreement with Vesting Rights.
- Hire Purchase Agreement for Live Stocks.
- Hire Purchase Agreement for Motor Vehicle.
- Assignment of Hire Purchase Agreement