A hire purchase contract is a legal document which is drafted when an individual is unable to pay the total amount of the purchase price of a good or a property and thus pays a monthly installment till the total amount paid equals to the purchase price of the good. These types of contracts include the details of the parties involved, purchase price of the good, monthly installment paid and other terms and conditions agreed between them.
Sample Hire Purchase Contract
Hire Purchase Contract Number: HP 678
Contract effective date: 12h of December 2011
This hire purchase contract has been drafted and entered into between Larry King referred to as the purchaser and Jay Leno referred to as the owner. As per the contract the purchaser has agreed to hire the house owned by the owner till he can pay the purchase price of the house.
Details of the house:
Address: 34 Rental Homes Lane,
Sin City, Nevada 7890.
Date of construction: 2nd of December 2002
Total area: 3000 square feet
Purchase price: $400000
There are few terms and conditions that both the parties need to agree to:
- The purchaser has to pay a monthly rental amount of $4000. The rent needs to be paid in advance at the beginning of every month.
- The purchaser has to make a deposit of an amount $25000 before the contract effective date.
- If the purchaser defaults in paying the rental amount, the owner may repossess the house.
Signature of the purchaser: Signature of the owner:
Larry King Jay Leno