Distinguish Between Agreement to Sell and Hire Purchase Agreement

Agreement to sell & Hire purchase Agreement 

1.  Form

  • An agreement to sell can be in writing or oral
  • Hire purchase agreement must be in writing.

2. Possession

  • The buyer may or may not get the possession of the goods.
  • Possession: The buyer gets the possession of the goods and enjoys it.

3. Purpose

  • Generally businessmen and consumers may enter into an agreement to sell with the purpose of resale of goods or to enjoy them.
  • Consumers without sufficient money, but interested in the goods, enter into hire purchase agreement for the purpose of enjoying the goods.


  • Under this, if a person buys any goods and subsequently sells them to a third party, the third party acquires a good title.
  • A hire-purchaser is not entitled to sell the goods until all the installments are paid because until then the ownership lies with the vendor.


  • Under this, a buyer is entitled to claim implied conditions and warranties.
  • A hire-purchaser cannot claim the benefits of implied conditions and warranties given by the law as sale is not completed.


  • An agreement to sell imposes a legal obligation on the buyer to purchase it.
  • A hire-purchaser has liberty to opt whether to continue to pay the installments or put an end to it.

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By Hassham

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