Hire Purchase & Equipment Lease
3. Hire Purchase Agreements
Authors: Staff Legal Eagle
Firm / Chambers:
Last updated: 23 Jul 2015
- A hire purchase agreement refers to a contract where the buyer purchases items and pays for them in instalments instead of paying the full value of the item upfront.
- Under a hire purchase agreement the buyer can possess and use the item from the moment the first instalment is paid however the person receiving the payments retains legal ownership of the item.
- The buyer will only own the item fully once the final instalment has been paid. This means that in the event of a default the seller will be entitled to seize the item in question as they are still technically the owner.
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