In the Lao PDR, the formalization of civil relations through the Civil Code represents a significant step toward economic modernization. However, the transition from traditional informal practices to codified hire-purchase agreements (Articles 414-417) faces challenges due to the gap between legal theory and societal application. This study aims to examine the legal principles and specific conditions of hire-purchase contracts under the Civil Code of the Lao PDR, analyze practical implementation challenges and the gap between theory and social reality, and propose strategic solutions for enhancing public legal awareness. The research utilizes a qualitative design, integrating doctrinal legal analysis of primary sources—such as the Constitution and the Civil Code—and in-depth interviews. Purposive sampling was used to select six key informants, including Civil Code drafting committee members, justice officials, and SME representatives, to identify patterns of societal understanding and obstacles. Findings indicate that while the legal framework is conceptually sound and sufficient, Public understanding remains narrow and reactive. There is a notable lack of "legal consciousness" among citizens and SMEs, leading to creditor-dominated terms and unfair contracts, especially in rural areas with limited infrastructure. To ensure the Civil Code functions as an effective tool for justice, the state must intensify grassroots legal education and standardized contract templates. Bridging this awareness gap is essential for protecting economic interests and achieving genuine equality in civil relations.