Right to use or benefit from property
Pay installments.
A hire-purchase is a contract whereby an owner of a property (lessor) lets it out on hire and promises to sell it to, or that it shall become the property of, the hirer(lessee) , conditionally on his/her making a certain number of payments
The lessee has the right to use or receive benefits from the leased property on the condition that a rent amount is paid to the owner (lessor) by installments. However, the ownership title of the property stays with the owner(lessor) and when all rent amounts had been paid as according to the contract , the lessee will automatically receive ownership title of the property.
Mod works for M-3 department store. He is a store assistant in the electrical appliances section of the store. One weekend Mod brought a latest model notebook computer home. Mod subsequently had a written hire-purchase contract with his friend Troy. Mod agrees to sell the notebook computer to Troy for 60000 baht after Troy have paid 12 monthly installments to Mod at 5000 baht per month.
After the 12 montly installment payments by Troy, Mod cannot transfer the ownership title of the computer to Troy because the computer is owned by M-3 department store. Is there anything Troy can do now?
Termination of contract by the lessee.
The owner of property lets property out for hire and promises to sell the property to the lessee. In other words, a hire-purchase contract comprises of a lease of property contract and the lessor's promise to sell property.
Ownership title of property is transfer to the lessee upon complete payment of all installments as according to the contract. For example, A agrees to lease his car to B and B will have to pay the purchase price of the car in twenty-four monthly installments. After complete payment of twenty-four installments, ownership title of the property shall be automatically transferred to the lessee.
The lessor must be the owner of the leased property or has ownership title of it.
It is not necessary for the lessor to be the owner of the property at the time of entering into the hire-purchase contract. At the time of entering into the contract, the lessor is only required to give a promise to sell the property