Section 625: Matters to be specified in hire-purchase contract

1) The following matters shall be specified in the hire-purchase contract referred to in Section 624:

(a) The goods and a short description thereof,

(b) Hire-purchase price of the goods,

(c) Cash price of the goods,

(d) The date of commencement of the contract,

(e) The amount of the installment payable by the hirer to the owner of the goods and the number of installments,

(f) The due date for payment of each installment and the mode of payment,

(g) The person and place for the payment of the amount pursuant to clause (f).

2) If an installment can be paid by any mode other than cash pursuant to clause (f) of sub-section (1), a brief description thereof shall be specified in the hire-purchase contract.

3) If a hire-purchase contract has been made without specifying any of the terms and conditions referred to in this Section, the hirer may sue for the rescission of such contract, and if the court thinks that non-specification of any of such terms and conditions in the contract is detrimental to the hirer, the court may rescind such contract or issue any such other order as it thinks fit.

Explanation:  For the purposes of this Chapter,-

(1) “Hire purchase price” means the total amount to be paid by the hirer to purchase or acquire the goods upon payment of the full price of the goods, and also includes an amount to be paid as a deposit or down payment.

(2) “Cash price” means the price to be paid in cash by which the hirer may purchase any goods.