A hire purchase agreement is a type of credit agreement between a buyer and seller. People typically enter into these contracts to buy products.Entering into a hire purchase agreement can be of great benefit in today's world. Our free templates and this guide can help you get started. Get information about what a hire purchase (HP) agreement is, what costs are involved and your rights when you take out a HP agreement. A hire purchase agreement is a financial arrangement between a buyer and a seller, where the buyer pays for the item in installments over a period of time. Hire purchase is a contract between two parties where a buyer decides to pay for goods in parts.