Hire-Purchase Contract

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Hire Purchase Contract  is legal within the scheme of Indian Contract Act, though the Hier purchase Act 1972 has been repealed in 2005 , is a special  contract under Sale of Goods Act 1930, in which the title of goods remains with the seller  till the last and final installment amount for purchase of the goods is remitted by the buyer. English people use the term Hire Purchase and Americans call it Instalment.

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The Hire Purchase Act, 1972 – Law Commission of India Report

 

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The Hire-Purchase Act, 1972[ Repealed by 2005 Act]

We are not going the details of the Repealed Act , suffice to produce the Scheme of the repealed Act to marshall the subject matter in depth. Remember Hire Purchase Agreement is Valid Document and could be read in Evidence.

1. Preamble
Chapter I Preliminary
2. Short title, extent and commencement.
3. Definitions.

Chapter II Form and Contents of Hire-Purchase Agreements
4. Hire-Purchase agreements to be in writing and signed by parties thereto.
5. Contents of hire purchase agreement.
6. Two or more agreements when treated as a single hire-purchase agreement.

Chapter III Warranties and Conditions, Limitation on Hire-Purchase Charges and Passing of Property
7. Warranties and conditions to be implied in hire-purchase agreements.
8. Limitation of hire-purchase charges.
9. Passing of property.

Chapter IV Rights and Obligations of the Hirer
10. Right of hirer to purchase at any time with rebate.
11. Right to hirer to terminate agreement at any time.
12. Right to hirer to appropriate payments in respect of two or more agreements.
13. Assignment and transmission of hirer”s right or interest under hire-purchase agreement.
14. Obligations of hirer to comply with agreement.
15. Obligation of hirer in respect of care to be taken of goods.
16. Obligation of hirer in respect of use of goods.
17. Obligation of the hirer to give information as to whereabouts of goods.
18. Right of hirer in case of seizure of goods by owner.

Chapter V Rights and Obligations of the Owner
19. Rights of owner to terminate hire-purchase agreement for default in payment of hire or unauthorised act or breach of express conditions
20. Rights of owner of termination
21. Restriction on owner’s right to recover possession of goods otherwise than through court
22. Relief against termination for non-payment of hire
23. Relief against termination for unauthorised act or breach of express condition
24. Obligation of owner to supply copies and information

Chapter VI Miscellaneous
25. Discharge of price otherwise than by payment of money
26. Insolvency of hirer, etc.
27. Successive hire-purchase agreements between same parties
28. Evidence of adverse detention is suit or application to recover possession of goods
29. Hirer’s refusal to surrender goods not to be conversion in certain cases
30. Service of notice.
31. Power to exempt from provisions of sections, 6,9,10,12 and 17 in certain cases
32. Act not to apply to existing agreements

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