(1) If a person lets
any goods to another person for hire on the following terms and
conditions, a hire-purchase contract shall be deemed to be
concluded:
(a) The hirer has the right of possession and use of
the goods let by the owner of the goods, on the
condition of payment of the rent amount by
installments in periodic basis for that goods,
(b) The hirer has the right to purchase the goods on
hire according to the terms and conditions of the
contract,
(c) The ownership of such goods would be
transferred to the hirer upon payment of the last
installment,
(d) The hirer may terminate the contract at any time
prior to the transfer of ownership pursuant to
clause (c).
(2) The contract referred to in sub-section (1) shall be
concluded in writing.
(3) The owner of the goods shall provide one copy of the
contract concluded pursuant to this Section to the hirer free of cost
as soon as the contract is so concluded.
Explanation: For the purposes of this Chapter,-
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(1) 'Goods' means any movable property that may be let
for hire for the purpose of its possession and use.
(2) 'Hirer” means a person who takes any goods on hire
for possession and use according to the hire-purchase
contract and also includes his or her successor in the
event of his or her death or other third person to
receive such goods under the contract.