The Elements of a Hire Purchase Contract - LawTeacher.net.
Hire purchase. Hire purchase (HP) is a type of borrowing. It is different from other types of borrowing because you don’t own the goods until you have paid in full. Under an HP agreement, you hire the goods and then pay an agreed amount by instalments. While you are still making payments, you aren’t allowed to sell or dispose of the goods.
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House of Lords in Shogun v Hudson. The facts of Shogun Finance Ltd v Hudson concerned a hire-purchase agreement fraudulently taken out by a rogue claiming to be Mr Patel, who subsequently sold the car he obtained by this deception to a third party, Mr Hudson. The seller then sued Mr Hudson, either for possession of the car, or equivalent damages to the value.
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A hire purchase (HP), known as installment plan is an arrangement whereby a customer agrees to a contract to acquire an asset by paying an initial installment (e.g. 40% of the total) and repays the balance of the price of the asset plus interest over a period of time. Other analogous practices are described as closed-end leasing or rent to own. The hire purchase agreement was developed in the.
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