Section 624: Hire-purchase contract deemed to be made

1)  If a person lets any goods to another person for hire-purchase on the following terms and conditions, a hire-purchase contract shall be deemed to be concluded:

(a) The hirer has the right of possession and use of the goods let by the owner of the goods, on the condition of payment of the rent amount by installments on a periodic basis for those goods,

(b) The hirer has the right to purchase the goods on hire according to the terms and conditions of the contract,

(c) The ownership of such goods would be transferred to the hirer upon payment of the last installment,

(d) The hirer may terminate the contract at any time prior to the transfer of ownership pursuant to clause (c).

2) The contract referred to in sub-section (1) shall be concluded in writing.

3) The owner of the goods shall provide one copy of the contract concluded pursuant to this Section to the hirer free of cost as soon as the contract is so concluded.

Explanation: For the purposes of this Chapter, –

1) “Goods” means any movable property that may be let for hire for the purpose of its possession and use.

2) “Hirer” means a person who takes any goods on hire for possession and use according to the hire purchase contract and also includes his or her successor in the event of his or her death or any other third person to receive such goods under the contract.