Pls help: difference between hire purchase agreements and chattel leases

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ecks
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What is the difference between hire purchase agreements and chattel leases?

I found some Australian websites saying purchasers under a chattel lease take legal title from the time of purchase. However, my lecture notes said otherwise "In the UK, there is normally no provision in a lease contract for legal title to the leased asset to pass to the lessee..."

Does this mean:
- purchasers under HPAs or chattel leases are merely bailees without legal title?
- the difference between HPAs and chattel leases is: HPAs contain an option to purchase the asset upon fulfilment of certain conditions, while chattel leases are just documents recording the lending?
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#2
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(Original post by ecks)
What is the difference between hire purchase agreements and chattel leases?

I found some Australian websites saying purchasers under a chattel lease take legal title from the time of purchase. However, my lecture notes said otherwise "In the UK, there is normally no provision in a lease contract for legal title to the leased asset to pass to the lessee..."

Does this mean:
- purchasers under HPAs or chattel leases are merely bailees without legal title?
- the difference between HPAs and chattel leases is: HPAs contain an option to purchase the asset upon fulfilment of certain conditions, while chattel leases are just documents recording the lending?
Are you sure the Australian sites you are referring to are not talking about a chattel mortgage? It doesn't make sense to talk about a purchaser under a lease because by definition a lease does not involve a purchase. Unsurprisingly in a chattel mortgage the purchaser gets legal title and the financier gets some kind of security interest (presumably a charge), just like it would work here when someone buys a house with a mortgage.

The difference between a HPA and a lease is that in a HPA the lessee gets legal title to the goods once all of the instalments have been paid. In a lease he doesn't.

I don't think it's helpful to talk about lessees being "merely bailees". To me a "mere bailee" is someone who has a mere permission to possess rather than a contractual right to possess and has to give the goods back back (or at least make them available for collection) when the bailor asks for them.
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