This Hire Purchase Agreement shall be used where the supplier hires its equipment directly to the hirer and allows the hirer to take control and use the equipment for the payment of equal monthly instalments. The hirer pays an initial deposit, with the remainder of the balance and interest paid over a defined period of time. At the end of the contract period ownership of the equipment transfers to the hirer.
The main difference between a Hire Purchase and a Contract Hire is that with a Hire Purchase ownership of the equipment is transferred to the hirer on the payment of the last instalment.
A Hire Purchase arrangement is particularly suitable for businesses wishing to purchase assets without paying the full value immediately.
Please note: This Hire Purchase Agreement shall be used where both the supplier and the hirer are incorporated businesses (i.e. one company hires equipment, which it owns, to another company). Do not use this template where the hirer is a sole trader or another unincorporated body as certain hire purchase agreements are regulated under the consumer credit regime; and this agreement assumes that it is exempt from regulation under the consumer credit regime.
This Hire Purchase Agreement contains the following clauses:
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Definitions and Interpretation
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Equipment Hire
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Payments & Deposit
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Delivery of the Equipment
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Ownership and Insurance
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Supplier’s Obligations
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Hirer's Obligations
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Purchase
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Liability & Indemnity
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Termination
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Consequences of Termination
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Confidential Information
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Entire Agreement
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Assignment
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Variation
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No Partnership
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Counterparts
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Third Party Rights
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Notices
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Severance
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Waiver
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Governing Law and Jurisdiction
SCHEDULE 1
SCHEDULE 2
This Hire Purchase Agreement is in Microsoft Word format, written in plain English, easy to use and edit.
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