hire purchase definition

  • noun:
    • Chiefly British buy of a commodity on an installment program.
    • A method of purchasing a product, in which the customer employs it and takes possession from it and will pay regular installments. Ownership is only transmitted on payment of final amount. Abbreviated as HP.
    • installment program
  • others:
    • A contract (much more fully called agreement of hire with a choice of purchase) in which an individual hires items for a specified period as well as a fixed lease, using the additional condition that when he shall retain the products when it comes to full period and pay all the installments of rent as they come to be because of the agreement shall determine as well as the subject vest absolutely in him, and that if he decides he may at any time during the term surrender items and become stop of every liability for future installments upon the agreement. In america such a contract is typically addressed as a conditional purchase, together with term hire-purchase normally sometimes applied to a contract in which the hirer is not able to stay away from future responsibility by surrender of goods. In England, but in the event that hirer does not have this right the contract is a sale.

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