Hire Purchase Agreement - Legal Service Provider In India
What is Hire Purchase Agreement? A hire purchase agreement is an agreement of hire with an option to purchase available at the disposal. The user makes a downpayment during the purchase, and the outstanding balance will be paid in instalments with an interest charge. Mostly, Indian people used concept mortgage, which is similar to the hire purchase agreement. In both cases, the ownership of the purchased goods will be transferred to the lender until the borrower pays off the whole debt. A hire purchase agreement is usually executed between one company and another party usually knows as a “hirer”. Various clauses of a hire purchase agreements include confirmation to hire from both parties, price of the equipment in question, payment to execute the agreement, monthly instalments payable by the hirer, remedies upon default of instalment by the hirer, dispute resolution clause etc. among other clauses governing the transaction. The hire purchase agreement to...