What is a hire purchase agreement in commercial law?
Introduction A hire-purchase agreement is a contract of hire for a fixed period at a fixed rental which also grants the hirer an option to buy. Therefore, if he sells the goods before he has exercised the option to purchase, he cannot pass a good title to the buyer.
What are the duties of a hirer in a hire purchase law?
Duty of care: The hirer has a duty to use the goods in ways that would not occasion damage to the goods. Payment of instalments: This is one of the main functions of the hirer. He has to pay instalments for the hirer purchase as and when due. There are a plethora of cases to help support this assertion.
What is hire purchase agreement?
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 are the rights of hire purchase under the hire purchase Act 1972?
Right of hirer to appropriate payments in respect of two or more agreements. (1) The hirer may assign his right, title and interest under the hire-purchase agreement with the consent of the owner, or, if his consent is unreasonably withheld, without his consent.
Is hire purchase agreement a liability?
The liability of a guarantor continues even though the finance company, pursuant to the provisions of the hire purchase agreement, taken possession of the goods. A guarantor’s liability is strictly limited to that imposed on the hirer by the hire purchase agreement.
When the ownership is transferred under hire purchase?
In legal terminology, transfer of ownership. It is only after paying off the full price of the goods, the hirer becomes the owner of the goods under a Hire-purchase agreement. Furthermore, the seller has the right to repossess the goods in case of default by the hirer.
Is a hire purchase agreement regulated?
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. understand your rights if you cannot keep up with payments; decide if you want to keep your goods or return them to the lender; deal with action by your lender; and.
Is seller in a hire purchase agreement?
There are two parties to the hire purchase agreement. One is the hire vendor, who is the seller and the other is the hire purchaser, the buyer. The hire purchaser exercises the option of purchasing. He may even return the goods, if he is not satisfied with their quality or performance.
What are the rights of hire seller or hire vendor?
The hirer should have the right to complete the purchase of the goods by paying or tendering to the owner the hire-purchase price or the balance left after paying off the installments. The hirer should have the right to terminate the agreement at whatever time the hirer thinks fit.
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 are the rights of a hire vendor?
Right of hirer to purchase at any time with rebate. Right to hirer to terminate agreement at any time. Right to hirer to appropriate payments in respect of two or more agreements. Assignment and transmission of hirer’s right or interest under hire-purchase agreement.
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 do you calculate hire purchase?
purchase goods through instalment payments
How important is hire purchase to the consumer?
The hire purchase agreement was developed in the United Kingdom in the 19th century to allow customers with a cash shortage to make an expensive purchase they otherwise would have to delay or forgo.
What is the definition of hire purchase?
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.
What are some types of Hire purchases?
The payment is to be made by the hirer (buyer) to the hiree,usually the vendor,in installments over a specified period of time.