Components Of Hire Purchase Agreement

The transaction consists of both the elements of the right of lease and sale, and it would be clearly wrong to equate it with the multiplication of movable property. [3] You`ll probably come across a lot of jargon/terms in a rental agreement. Below is a list of terms/items frequently used in a rental agreement. Any balloon payment charged for a rental credit – although it is not an additional fee – has the effect that part of the costs are paid until after the loan. This means that in previous months and years, consumers repay less of their credit than in the case of a bank or cooperative credit. A tempe purchase contract is drawn up and signed by the tenant (consumer) and on behalf of the owner (the lending institution). If a trader is involved, for example a workshop, he also signs the contract and delivers the goods in question.