The hirer's rights
The hirer usually has the following rights:
1.To buy the goods at any time by giving notice to the owner and paying the balance of the HP price less a rebate (each jurisdiction has a different formula for calculating the amount of this rebate)
2.To return the goods to the owner — this is subject to the payment of a penalty to reflect the owner's loss of profit but subject to a maximum specified in each jurisdiction's law to strike a balance between the need for the buyer to minimize liability and the fact that the owner now has possession of an obsolescent asset of reduced value
3.With the consent of the owner, to assign both the benefit and the burden of the contract to a third person. The owner cannot unreasonably refuse consent where the nominated third party has good credit rating
4.Where the owner wrongfully repossesses the goods, either to recover the goods plus damages for loss of quiet possession or to damages representing the value of the goods lost.
The hirer's obligations
The hirer usually has the following obligations:
1.to pay the hire installments
2.to take reasonable care of the goods (if the hirer damages the goods by using them in a non-standard way, he or she must continue to pay the installments and, if appropriate, recompense the owner for any loss in asset value)
3.to inform the owner where the goods will be kept.
4.A hirer can sell the products if, and only if, he has purchased the goods finally or else not to any other third party.
The owner's rights
The owner usually has the right to terminate the agreement where the hirer defaults in paying the installments or breaches any of the other terms in the agreement. This entitles the owner:
1.to forfeit the deposit
2.to retain the installments already paid and recover the balance due
3.to repossess the goods (which may have to be by application to a Court depending on the nature of the goods and the percentage of the total price paid)
4.to claim damages for any loss suffered.