e-StampNotary
Hire purchase, lease, or sale on instalments?
Three different transactions that look similar from the outside:
- Hire purchase — the hirer takes possession and pays instalments; ownership passes only when the final instalment and any option payment are made. Until then the owner still owns it.
- Lease — the lessee takes possession and pays rentals for a term; ownership never passes, and the asset returns at the end unless a separate purchase option is exercised.
- Sale on deferred payment — ownership passes immediately and the seller is left as an unsecured creditor for the balance, unless a charge is created.
Under a hire purchase or lease, the owner still owns the asset and its recovery is a different exercise from suing for a debt. Under a sale on deferred payment, the goods belong to the buyer and the seller is chasing money. Businesses frequently document one and believe they have the other.
What the agreement must set out
- The asset, identified by make, model and serial or chassis number
- The instalment schedule, interest or hire charge, and the total payable
- Who insures, maintains and repairs, and who bears loss or damage
- Where the asset may be kept, and whether it may be moved
- Default, and the procedure on repossession — including notice
- End of term — return, extension, or purchase option and at what price
- Registration and statutory compliance where the asset is a vehicle
We do not publish duty figures on this website. The Gujarat Stamp Act, 1958 was amended in 2025 and several articles were restructured; a rate printed on a web page goes stale and costs somebody money. As a Government authorised e-Stamping centre we confirm the duty currently prescribed for your specific document and issue the e-stamp against it, at face value. The notarial fee is separate and capped by law — ₹35 to attest execution, ₹35 to administer an oath or take an affidavit, under Rule 10(1) of the Notaries Rules, 1956. The full fee table →
Drafted here, in Gujarati or English
Drafted by an advocate of 35+ years rather than filled into a downloaded template, e-stamped at a Government authorised centre, and notarised in the same visit. If the parties read Gujarati, the document is drafted in Gujarati — not translated out of an English form, because legal Gujarati has its own settled vocabulary and a literal translation frequently means something looser.
What to bring
- Full description of the asset with serial or chassis number
- Invoice or proof of the owner's title
- Agreed instalment schedule and total payable
- Insurance details
- Photo ID and constitution details for both parties