6.2 Essential Elements and Formation

1. Goods — existing, identifiable movables (the vehicle, the appliance, the machine).2. The hire's terms: an initial payment/down-payment, instalments over the period, and the hire-rate's composition.3. The purchase option — exercisable on completing the instalments (or earlier per the deed), often for a nominal option fee.4. Ownership's reservation — title stays with the owner until the option's exercise; the hirer is a bailee meanwhile, not a buyer.5. Delivery of possession to the hirer — the arrangement's economic point (use now, pay over time, own last).6. The general contract essentials (capacity, consent, lawful object — Law of Contract-I, Units 2–5), with the consumer-protection overlay (Consumer Protection Act 2075) policing unfair terms.