Information about a long-term lease with purchase option must appear in a written contract.
The contract must contain:
- the date and place of the contract's signature;
- your first name, last name and address;
- the merchant's name and address;
- the amount of the security deposit, if applicable;
- the amount of the monthly instalments;
- the details about the purchase option, namely the amount you will have to pay to purchase the item or how to calculate this amount;
- any other conditions to be fulfilled;
- both signatures (yours and the merchant's).
The contract must also include:
- the clause provided for under section 45.1 of the Regulation respecting the application of the Consumer Protection Act (36.7 KB), which informs you of your rights and obligations as well those of the merchant.
- the clause provided for under section 43 of the Regulation respecting the application of the Consumer Protection Act (35.6 KB), if the contract contains a clause of forfeiture of benefit of the term. This clause allows the merchant to ask you pay the total amount of any late payments. If you have not made that payment after 30 days, the merchant will demand payment of all instalments provided for in the contract.
The merchant must sign the contract first, then allow you to read it, and then have you sign it. Lastly, the merchant is required to give you a copy of the contract signed by both parties.
Last update : October 23, 2020
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The information contained on this page is presented in simple terms to make it easier to understand. It does not replace the texts of the laws and regulations.