The characteristics of a hire purchase transaction are as follows:

1. It is a contract between the owner of goods and the hirer, which is required to be in writing.
2. The relationship between the parties is that of a bailor and bailee. The bailor is the owner while the bailee is the hirer.
3. The property does not pass when the agreement takes effect, but at the stipulated time and when the conditions are satisfied.
4. The hirer is entitled to return the goods at any time and thereby determine the contract. Thereafter, he is not liable for further payment of installments.
5. The hirer enjoys the option to purchase the goods if he so desires by meeting the agreed conditions