A contract for the hire of goods is one of the four types of goods contract covered by the Consumer Rights Act 2015.

To understand how this fits within the wider framework of goods contracts, see What Goods Contracts Are Covered?.

What Is a Hire of Goods Contract?

A hire of goods contract is where you pay to use goods for a period of time, but ownership does not transfer to you.

You are paying for temporary use, not ownership.

Common examples include:

  • Hiring tools or equipment.
  • Renting furniture.
  • Short-term vehicle hire.

How Is It Different from a Sales Contract?

Under a Sales Contract, ownership transfers from the trader to the consumer.

Under a hire contract, ownership remains with the trader at all times.

How Is It Different from Hire-Purchase?

Under Hire-Purchase Agreements, there is a hire period followed by transfer of ownership once payments are complete.

Under a simple hire contract, ownership never transfers.

What Rights Apply?

Even though you do not own the goods, the Consumer Rights Act 2015 still applies.

The goods supplied under a hire contract must:

  • Be of satisfactory quality.
  • Be fit for purpose.
  • Be as described.

The trader must also have the right to supply the goods.

For more on ownership and legal title, see Ownership of Goods.

Responsibility During the Hire Period

The contract will usually set out who is responsible for:

  • Damage.
  • Maintenance.
  • Insurance.

These terms must be fair and transparent.

Why This Category Matters

The Consumer Rights Act 2015 applies only to specific categories of goods contracts. Identifying whether your agreement is hire, hire-purchase, or sale helps determine how ownership and responsibilities operate.