Hire Purchase Agreement
Last updated: July 1, 2026
DRAFT FOR LEGAL COUNSEL REVIEW
This document is a working draft prepared for review by qualified legal counsel. It has not been finalized and is subject to revision. No reliance should be placed on its contents until reviewed and approved by counsel licensed to practise in the Republic of Ghana.
1. Parties and Definitions
This Hire Purchase Agreement ("Agreement") is entered into between The Third Corner ("the Owner"), a company registered under the laws of the Republic of Ghana, and the customer identified in the associated contract record ("the Hirer"). "Goods" means the equipment described in the contract. "Deposit" means the initial down payment specified. "Instalment" means each periodic payment due under the schedule. "Term" means the total duration of the agreement in months.
2. Goods and Purchase Price
The Owner agrees to let on hire, and the Hirer agrees to take on hire, the Goods described in the contract record. The total cash price of the Goods, the deposit amount, the financed amount, the annual interest rate, and the number of instalments shall be as specified in the contract record generated at the point of sale.
3. Deposit and Financing
The Hirer shall pay the Deposit prior to taking possession of the Goods. The minimum deposit shall be not less than twenty per cent (20%) of the total cash price, or such higher amount as may be required by the Owner. The balance (the "Financed Amount") shall be payable in equal monthly instalments over the agreed Term at the applicable annual interest rate.
4. Instalment Schedule
Instalments are due on the same calendar day of each month following the commencement date. The Owner shall generate an instalment schedule detailing the due date, principal, interest, and total amount for each instalment. The Hirer may elect to pay instalments via card, mobile money, or cash at any branch.
5. Ownership and Title
Title to and property in the Goods shall remain vested in the Owner until the Hirer has paid all instalments and any other sums due under this Agreement in full. The Hirer acquires the right of possession and use only, and shall not sell, assign, sub-let, pledge, or otherwise dispose of the Goods until title has passed. Upon payment of the final instalment and all sums due, title shall pass to the Hirer.
6. Possession, Care, and Risk
The Goods shall be at the Hirer's risk from the time of delivery. The Hirer shall keep the Goods in good condition, use them in accordance with the manufacturer's instructions, and not remove, deface, or alter any identifying marks or serial numbers. The Hirer shall permit the Owner or its agents to inspect the Goods at reasonable times upon prior notice.
7. Default
The Hirer shall be deemed in default if any instalment remains unpaid after the expiration of the grace period (seven (7) days from the due date), or if the Hirer breaches any other material term of this Agreement. The Owner shall issue a written notice of default specifying the amount in arrears and demanding payment within a cure period of not less than seven (7) days.
8. Remedies Upon Default
If the default is not cured within the cure period, the Owner may, without prejudice to any other right or remedy: (a) terminate this Agreement; (b) repossess the Goods; (c) recover all arrears and reasonable costs of recovery; and (d) retain all payments previously made as reasonable compensation for the use of the Goods. Repossession shall be conducted in accordance with applicable law and with due regard to the Hirer's rights.
9. Early Settlement
The Hirer may settle the outstanding balance in full at any time before the end of the Term. Upon early settlement, the Hirer shall be entitled to a rebate of interest calculated on the remaining instalments. The Owner shall provide a settlement statement upon request within five (5) business days.
10. Grace Period and Right to Cure
Each instalment shall be subject to a grace period of seven (7) days. The Owner shall not treat a payment as in default during the grace period. The Hirer shall be entitled to cure a default and reinstate the Agreement by paying all arrears and reasonable costs before the Owner has exercised its right to terminate.
11. Maximum Default Threshold
Notwithstanding any other provision, the Owner shall not initiate repossession proceedings until the Hirer has missed at least two (2) consecutive instalments and has failed to cure the default within the cure period following the second missed instalment.
12. Privacy and Data Processing
The Owner shall process the Hirer's personal data in accordance with the Privacy Policy. Personal data collected for the purposes of this Agreement includes identity verification information, contact details, and payment data. The Hirer consents to the processing of such data for the purposes of credit assessment, instalment collection, and default management.
13. Notices
All notices under this Agreement shall be in writing and may be delivered by SMS, email, or in person at any branch. Notices sent by SMS or email shall be deemed received on the day of sending.
14. Governing Law and Dispute Resolution
This Agreement shall be governed by and construed in accordance with the laws of the Republic of Ghana, including the Hire Purchase Act, 1974 (NRCD 292). Any dispute arising shall first be referred to amicable negotiation. If unresolved within thirty (30) days, the dispute shall be referred to arbitration in Accra in accordance with the Alternative Dispute Resolution Act, 2010 (Act 798).
15. Entire Agreement
This Agreement, together with the contract record and instalment schedule, constitutes the entire agreement between the parties and supersedes all prior representations. No variation shall be effective unless in writing and signed by both parties.
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