The purchase and sale of goods is the oldest form of business transaction. The cash obtained from the sale will be paid by the purchaser to the seller. In large transactions of sale of goods, an agreement and the clauses or conditions in the agreement between the seller and buyer determines the transaction of money. In the agreement the payment mode will be specified and the parties have to act in accordance to that. There are several acts prevailing in the country relating to the contracts and transactions involved in business or sale of goods. The Indian contract acts, Sale of goods act are some of them. The Hire purchase act, 1972 is enacted for the purpose for the hiring of goods for a stipulated time and money. It states the duties, rights and obligation of the parties involved in the hire purchase of goods. The act extends to the whole of India except the state of Jammu and Kashmir as the act number 26 of 1972. There are six chapters with 31 sections in the act. After the preliminary chapter, section 2 or the definition clause of the act defines the contract of guarantee, hire purchase, the hire purchase price or sum, hire purchase agreements, hirer and owner from the sub clauses of section 2 (a-g), Section 2 d is the important section in the definition clause which defines the hire purchase price between the parties who enter in to the agreement. The mode of payment and purchase of goods of sum payable or for credit is specified in section 2 d.
Section 3 deals with the conditions to be adapted in entering in an agreement by the parties. It directs that the agreement should be in writing by the parties specifying the conditions of the agreement and signed by them. In a contract of guarantee the signature of the surety is mandatory. Section 4 of the act dealt with the content that are to be incorporated in an agreement. The hire purchase price of the goods should be specified in at the commencement of the agreement in accordance with section 4 of the act.
Section 5 -10 deals with the treating of more than one hire purchase agreement as one. Section 6 deals with the warranties and conditions in an agreement. It says that every hire purchase agreement should have an implied condition. Section 7 deals with the limitations or the payment by installment of goods .Section 8 says that the transaction of goods should be done only after the complying with the conditions of the agreement. Section 9 deals with the right of purchaser to buy the goods with discount and section 10 states the conditions where the purchaser can repudiate or terminate the agreement. Section 12 deals with the assignment of the hire purchaser’s title or interest or any conditions in the hire purchase agreement. Section 13 to 16 put forth the obligatory duties of the hire purchaser in compliance with the hire purchase agreement. The care to be taken on the goods, use of goods and information about the goods are detailed in the respective sections. The rights of owner to terminate the hire purchase agreement, the rights of the owner after the termination of the agreement are stated in section 18 and 19.
The restriction or limitation of the owner to recover goods other than court proceedings are detailed in section 20. Relief or remedy against the nonpayment of the hire and for the breach of conditions in an agreement is stated in section 21 and 22. Another important section is 27 which confer power to adduce evidence in recovery or possession of goods. Section 29 deals with the issuance of notice to the owner or the purchaser.
Section 30 deals with the exemption clause and section 31 affirms the application of provisions of the act in the hire purchase agreement after the commencement of the act.