Hire purchase is a method of sale where goods are leased by a creditor, usually a finance company, to a customer. The customer takes possession of the goods and agrees to pay for them in periodic installments. Ownership remains with the creditor until the final installment is paid, at which point it transfers to the customer. Hire purchase agreements must be in writing and include details of the goods, purchase price, installment amounts and due dates. The customer can terminate the agreement at any time before ownership transfers.

1. MEANING AND DEFINITION
JOBI MATHAI

2.  Hire purchase system originated in U.K.
 Hentry moore a Piano maker introduced this system in
1846.
 Hire purchase is a method of sale .In this system the goods
are let out on hire by a creditor (usually a finance
company) to the hire purchase customer (hirer)
 The buyer is required to pay an agreed amount in
periodical instalment.
 The ownership of the property remains with creditor and
passes on to hirer on the payment of the last instalment.

3. Hire purchase is based on an agreement in
writing.
The buyer takes possession of the goods at the
time of entering into contract.
Each instalment is treated as hire charges
Ownership transfer from the buyer to the seller
on the payment of the last instalment.
The purchaser has the right to terminate the
agreement any time before the property passes.

4. 1, To purchase with rebate
2To terminate agency
3To appropriate payment
4 to assaign and transmit
To refund on seizure of goods

5. 1 To comply with the agreement
2To take care of goods
3 Not to make unathorised use.
4 To give information

6. Right to terminate the agreement
To recover possession.
To recover damage.

7. To supply a copy of the agreement
.To supply all necessary information.

8. Hire purchase is based on an agreement.It has to
be in writing and signed by both parties.
The agreement must contain
1, Description of the goods
2 Hire purchase price of the goods
3 The date of commencement of the agreement.
4 The number of instalments ,amount, and due
date.

9. Through sub sec (1) of Sec 6 of the banking regulation
act of 1949 the Govt. of India has permited Banks to
engage in hirepurchase business.RBI isued following
guide lines.
1 Banks shall not themselves under take the HP
business
2 Banks can set up subsidiaries for this.

10. Hire purchase and credit sales
Hire purchase and instalment sales
Hire purchase and leasing

11.  The hire purchase act of India 1972 defines a hire purchase agreement
as an agreement under which goods are let on hire and under which
the hirer has an option to purchase them in accordance with the
terms of agreement under which,
 Payment is to be made in instalments over a specified period.
 Possession is transferred to the purchaser at the time of entering into
the contract
 Ownership in goods transfer to the purchaser on payment of the last
instalment.
 Each instalment is treated as hire charges so that if default is made in
payment of any one instalment the seller is entitled to take away the
goods.
 The hirer is free to return the goods without being required to pay
any further instalment falling due after the return.