Generally, contracts of hire purchase resemble contract of sale very closely, and indeed in practically all cases of hire-purchase, the ultimate sale of the goods is the real object of the transaction. The distinction between them is very clear and extremely important at this initial stage.
A contract of sale involves two parties, the buyer and the seller, whereas a hire purchase transaction invariably involves three parties to it, namely, the seller, of the goods who sells them to finance a company, which in turn leaves the goods on hire purchase terms to the hirer(who may not become the buyer).
Under a hire purchase transaction,(as it shall be seen later)the hirer,(who may or may not become the buyer) has possession of the goods and is entitled to their use, although he is not the owner.
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