A Hire Purchase Agreement Is

12. The lessee must insure, on behalf of the company, the machines and equipment mentioned with any recognized insurance company and pay the premium on the due date and regularly. The insurance policy is given to the company and the tenant must, from time to time, provide the company with proof of the premium or provide an actual copy or Xerox to the company. If the tenant does not guarantee these machines and installations or does not pay the premium at any time, the company has the right to insure the same or pay the premium, as the case may be, and the costs incurred by the company are paid by the tenant to the company when required. The landlord usually has the right to terminate the contract if the tenant is in arrears in paying the measurements or if he violates any of the other conditions of the agreement. This entitles the owner: The rental purchase (HP) is a type of loan.