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Standard Provisions of How HP Works
To be valid, HP agreements must be in writing and signed by
both parties. They must clearly set out the following
information in a print that all can read without effort:
1.a clear description of the goods
2.the cash price for the goods
3.the HP price, i.e., the total sum that must be paid to hire
and then purchase the goods
4.the deposit
5.the monthly installments (most states require that the
applicable interest rate is disclosed and regulate the rates
and charges that can be applied in HP transactions) and
6.a reasonably comprehensive statement of the parties' rights
(sometimes including the right to cancel the agreement during
a "cooling-off" period).
7.The right of the hirer to terminate the contract when he
feels like doing so with a valid reason. .
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