Hire Purchase Agreement

A hire purchase agreement is one under which a person

takes delivery of goods promising to pay the price by a
certain number of installments and, until full payment is
made , to pay hire charges for using the goods.

Hire purchase Vs Sale

In a sale, the property is transferred to the buyer, he can
deal with the property as he likes and the transferee of the
purchase gets a good title even if the price is unpaid.

But in a hire-purchase agreement , the purchaser does not

become owner till the full price is paid. And he does not get
the title.
 Conditions and Warranties

Condition : A condition is a stipulation or terms which are

essential to the main purposes of contract, the breach of
condition gives a right to others to treat the contract as
repudiated.
Warranty : A condition is a stipulation or terms which are not
essential to the main purposes of contract, the breach of
warranty gives a right to others to claim for damages but not
to reject the goods or repudiate the contract .
 When a condition can be treated as a warranty

1. Voluntary waiver of condition

2. Compulsory waiver of a condition
Distinction between condition and warranty