LEGAL NATURE OF HIRE PURCHASE

Hire-purchase contract can be considered as a contract for preparing and transfer of movable and immovable properties by seller on the condition that if the amount of contract returns in certain installments the buyer will become the owner of properties. This contract has coordination with lease in one side and with sale on the other side. This is because transfer of benefits ownership appears at the commencement of it and at the conclusion it leads to transfer of the object ownership. By the way with attention to particulars of this contract in payment of the loan with preserving of object ownership until the complete return of installment. Some have known it similar to mortgage and loan while with the precise attention to statute of banking operations without usury and related executive orders. It is known that in spite of existing similarities with aforesaid contracts.