Repossession under a hire purchase agreement typically occurs when the borrower (or hirer) fails to meet the repayment terms outlined in the agreement. This can include defaulting on payments, failing to maintain the asset, or breaching any other contractual obligations.
In such cases, the lender (or owner) has the right to reclaim the asset, which is usually the purchased item, such as a vehicle or equipment. The specific terms and conditions regarding repossession, including notices that must be provided and any applicable grace periods, are generally detailed in the hire purchase agreement itself and can vary by jurisdiction. It's important for borrowers to understand their rights and responsibilities within the context of a hire purchase agreement to avoid repossession.