A neutral-form hire-purchase (HP) agreement between an Owner and a Hirer, under which the Hirer hires goods and acquires the option to buy them on completion of payments, governed by the law of England & Wales.
⚠️ Consumer hire-purchase is heavily regulated. Hire-purchase may be a regulated consumer credit agreement under the Consumer Credit Act 1974 not only for consumers but also for many individuals acting in a business capacity (such as sole traders) and some partnerships, unless a specific statutory exemption applies. The regulatory status must be checked for each agreement. Where the CCA applies, that brings extensive mandatory requirements: the owner must be FCA-authorised, the agreement must contain prescribed terms and information, the Hirer has cancellation/withdrawal rights, and there are repossession protections (for example, once the Hirer has paid one-third of the total price, the Owner generally cannot repossess without a court order). The Hirer also generally has a statutory right of voluntary termination before the final instalment, with total liability capped broadly at 50% of the total price, plus any arrears and compensation for failure to take reasonable care of the goods. This template does not, by itself, satisfy those requirements) for consumer HP, take specialist regulatory advice. The template is more suitable for business-to-business HP.
How to use this template - Replace every
[SQUARE-BRACKET]field before use. - Confirm whether the Hirer is a consumer (see warning) before using this. - Have a solicitor review before use.
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THIS HIRE-PURCHASE AGREEMENT is made on [DATE]
BETWEEN (1) [OWNER NAME] of [ADDRESS] (the "Owner"); and (2) [HIRER NAME] of [ADDRESS] (the "Hirer").
Agreed terms
1. Hire and option to purchase. The Owner lets to the Hirer, and the Hirer takes on hire, the goods described in Schedule 1 (the "Goods"). On payment of all sums due and exercise of the purchase option, ownership of the Goods passes to the Hirer.
2. Delivery. The Owner will deliver the Goods to [ADDRESS] on [DATE]. Risk in the Goods passes to the Hirer on delivery; title remains with the Owner until the option is exercised.
3. Payments. The Hirer will pay: a deposit of £[AMOUNT]; then [NUMBER] [monthly] instalments of £[AMOUNT]; and an option-to-purchase fee of £[AMOUNT]. The total amount payable is £[TOTAL].
4. Hirer's obligations. The Hirer will keep the Goods in good condition, use them properly, insure them, not sell or charge them, and not remove them from [LOCATION] without consent.
5. Title and option. The Goods remain the Owner's property until the Hirer has paid all sums and the option fee. The Hirer may exercise the option to purchase by paying the option fee with the final instalment.
6. Warranty. The Owner warrants it has the right to let the Goods on hire. [Set out any condition/quality warranties; note that for consumers, statutory rights cannot be excluded.]
7. Default and repossession. If the Hirer fails to pay or breaches the agreement, the Owner may [terminate and recover the Goods], subject to any protections the Hirer has by law. (For consumer HP, repossession after one-third paid generally needs a court order, see the warning above.)
8. Early settlement. The Hirer may settle early by paying the outstanding balance [less any rebate required by law].
9. Governing law and jurisdiction. This Agreement is governed by the law of England and Wales, whose courts have jurisdiction.
Execution
Signed by [OWNER NAME]: __________________ Date: [DATE]
Signed by [HIRER NAME]: __________________ Date: [DATE]
Schedule 1, The Goods
--- This template is a starting point and not legal advice. Consumer hire-purchase is regulated under the Consumer Credit Act 1974 and needs FCA authorisation and prescribed terms, have a qualified solicitor review and adapt it before use. Governing law: England & Wales.