Hello, I am looking for someone to write an essay on Entering in to a Credit Agreement. It needs to be at least 1000 words.Rest of the amount is paid in small monthly installments. In his scheme of th

Hello, I am looking for someone to write an essay on Entering in to a Credit Agreement. It needs to be at least 1000 words.

Rest of the amount is paid in small monthly installments. In his scheme of thing, the good sold belongs to the shop until and unless complete money i.e. last installment is not paid to the shop. This was used to be called Hire Purchase agreements but is now called an Installment Sales Agreement.

Before entering an agreement for a credit, a person must be fully aware of terms and conditions of the credit. There are certain requirements that need to be complied with while entering an agreement to protect consumer's interest. The Consumer Credit Act 1974 and subsequent amendments lay down certain well defined requirements for a consumer's protection. If these requirements are not met the agreements will be considered as not enforceable without a court order. Various Consumer Credit Acts provide number of rights to the consumers to settle the agreement at any time by giving notice in writing and paying off the amounts owed under the Agreement.

A person entering consumer credit or consumer hire agreement should carefully go through the agreement forms and content of document accompanying the agreement. Section 60(1) of CCA requires a credit agreement document to aware debtor or hirer clearly about following:

Consumer credit or consumer hire agreement document in the prescribed form, containing all the prescribed terms of the agreement and conforming to regulations under section 60(1), is not signed in the prescribed manner by the debtor or hirer and by or on behalf of the creditor or owner

The document does not include all the terms of the agreement, other than implied terms

The document is, when presented or sent to the debtor or hirer for signature, in such a state that all its terms are readily legible.

Contents of a Credit Agreement

According to Credit Agreement Act, debtor or buyer and hirer or seller both arties must sign a written agreement including all terms and conditions. A credit agreement document must include following details:

Names and addresses of both the buyer and seller

A complete and clear description of the goods

The cash price and the other charges (finance charges, insurance and so on) that make up the total price the buyer must pay

The deposit that must be paid. No credit agreement is legal until the deposit is paid.

The amount of each installment, including the last installment, and the day of the week or month by which it must be paid.

All other terms and riders like who will the owner of goods until all the installments or full cost of the good is paid, at what conditions the purchaser can make prepayments or what will be the result if full installments are not paid.

Terms and conditions if a seller has sold defective goods or it break down without any fault from purchaser side.

Canceling an Agreement

There are cases when a