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Hire purchase

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Hire purchase
A transaction in which the purchaser of goods pays an initial Deposit and takes possession.
    
Subsequent installments are made over a specified time after which ownership passes to the purchaser. Hire purchase (frequently abbreviated to HP) is the legal term for a contract developed in the United Kingdom, and NOW found in India, Australia, New Zealand, and other states which have adopted the English law concept. (In North America, where the word hire most commonly refers to employment, the comparable system is called closed-end leasing.) In cases where a buyer cannot afford to pay the  full amount for an item or property but can afford to pay a percentage as a Deposit, a hire-purchase contract allows the buyer to hire the goods for a monthly rent. When a sum equal to the original full price plus Interest has been paid in equal installments, the buyer may then  to buy the goods at a predetermined price (usually a nominal sum) or return the goods to the owner.
Posted by  Henley & Partners Group Holdings Ltd
 
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