What are the salient features of Hire Purchase?

Hire purchase means a transaction where goods are purchased and sold on the terms that: (i) Payment will be made in installments, (ii) The possession of the goods is given to the buyer immediately, (iii) The property (ownership) in the goods remains with the vendor till the last installment is paid, (iv) The seller can ...

1. What are the features of hire purchase?
2. What do you mean by hire purchase?
3. What is the difference between leasing and hire purchase?
4. Who regulates hire purchase?
5. What is the definition of hire purchase and what is the important elements of hire purchase agreement?
6. What is difference between hire purchase and installment system?
7. Is hire purchase regulated or unregulated?
8. How are hire purchase agreements regulated?
9. What is hire purchase agreement in law?

What are the features of hire purchase?

Features of Hire Purchase

The payment of the installments is to be done by the buyer i.e., the hirer to the seller over the specified period of time. Buyer gets the possession of the goods immediately. In case of any default of installment payment by the hirer, the vendor has the right to repossess the goods.

What do you mean by hire purchase?

Hire purchase (HP) is a type of borrowing. ... Under an HP agreement, you hire the goods and then pay an agreed amount by instalments. While you are still making payments, you aren't allowed to sell or dispose of the goods without the lender's permission.

What is the difference between leasing and hire purchase?

The key difference between a lease agreement and a hire purchase finance agreement is that at the end of a lease, you return the asset and at the end of an HP, you have the option to purchase and keep the asset if you so choose.

Who regulates hire purchase?

This fact sheet tells you your rights if you have a hire purchase or conditional sale agreement that is regulated by the Consumer Credit Act 1974.

What is the definition of hire purchase and what is the important elements of hire purchase agreement?

Besides, according to common law, the hire-purchase transactions is a contract whereby the owner lets out goods on hire and agrees that on completion of the necessary payments , the hirer may either return the goods and terminate the contract or elect to but the goods.

What is difference between hire purchase and installment system?

Hire Purchase: System of buying goods by making regular payment until the full price is paid. Installment: System of credit sale in which a sum of money or debt is paid regularly in installment. ... Installment: Buyer can sell or transfer the ownership of the good at any time.

Is hire purchase regulated or unregulated?

The agreement is expressed to be an agreement under the Consumer Credit Act 1974 but confirms as it is a business-to-business agreement it is not regulated.

How are hire purchase agreements regulated?

A hire purchase (HP) agreement is a credit agreement. ... Hire Purchase is regulated by the Consumer Credit Act 1995. You should know: Some HP agreements have a balloon payment at the end of the agreement which is normally higher than your usual monthly payments.

What is hire purchase agreement in law?

Hire purchase agreements are the kind of agreements whereby the owner of goods allows a person (the hirer) to hire goods from him for a specific period of time by paying instalments. Here, the hirer has the option to buy the goods at the end of the contract if all the instalments are paid respectively.