The main difference between a Hire Purchase and a Contract Hire is that with a Hire Purchase ownership of the equipment is transferred to the hirer on the payment of the last instalment.

A Hire Purchase arrangement is particularly suitable for businesses wishing to purchase assets without paying the full value immediately. 

Please note: This Hire Purchase Agreement shall be used where both the supplier and the hirer are incorporated businesses (i.e. one company hires equipment, which it owns, to another company). Do not use this template where the hirer is a sole trader or another unincorporated body as certain hire purchase agreements are regulated under the consumer credit regime; and this agreement assumes that it is exempt from regulation under the consumer credit regime.

This Hire Purchase Agreement contains the following clauses:

1. Definitions and Interpretation
2. Equipment Hire
3. Payments & Deposit  
4. Delivery of the Equipment 
5. Ownership and Insurance
6. Supplier’s Obligations
7. Hirer's Obligations
8. Purchase   
9. Liability & Indemnity
10. Termination
11. Consequences of Termination
12. Confidential Information 
13. Entire Agreement
14. Assignment
15. Variation
16. No Partnership
17. Counterparts
18. Third Party Rights
19. Notices
20. Severance
21. Waiver
22. Governing Law and Jurisdiction

SCHEDULE 1

SCHEDULE 2

This Hire Purchase Agreement is in Microsoft Word format, written in plain English, easy to use and edit.