The scope of contractual freedom in a lease-purchase agreement

Abstract

The lease-purchase agreement is a contract regulated outside the will of its parties, as the legislator has determined its terms, effects, and content independently of their consent. This restricts their freedom, which constitutes an infringement on the principle of freedom of contract. However, economic and social necessity has necessitated this arrangement, making it a form of credit sale. It allows those whose economic capabilities prevent them from purchasing a home outright to do so, and it guarantees the owning real estate entity the necessary credit to retain ownership of the property until its price is fully paid or until it is reclaimed in the event of the beneficiary's failure to pay or bankruptcy.