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In consequence, it was not a sale on instalment terms but more in the nature of hire purchase. The hirer has an option to buy the goods at the end of the agreement if all installments are being paid. The Federal court held that on a proper construction of the agreement, it was clearly the intention of the parties that property in the tractor was not to pass until full payment. If a higher value exchange is required under COURTS FlexiPlans purchase, then a new instalment plan agreement must be sanctioned. The judgment in this case, by Mr Justice Michael Hanna in the High Court on Wednesday 27 July 2011, establishes that where a consumer wishes to end or terminate a Hire Purchase agreement early, finance companies are not allowed to insist on payment of arrears or payment of a shortfall before they accept the return of goods. Hire purchase agreements are agreements whereby an owner of goods allows a person, the hirer, to hire goods from him for a period of time by paying installments. Hire purchase agreements usually last between 2 and 5 years, the most common last 3 years. Hire purchase is an agreement whereby a person hires goods for a period of time by paying instalments, and can own the goods at the end of the agreement if all instalments are paid.
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