A grace period is the amount of time you have to get your late payment to the rental store before you have to pay a penalty or return the merchandise. Many consumers schedule their rental payments around payday because they know they will have the cash on hand that day. Reinstatement means that within a certain time period, you have the right to pay all late payments to the rental store. All other charges will also have to be paid to prevent your losing any rights or investments you made in the rental merchandise. If you have paid a lot of money towards owning the item, you do not want to lose it because of a lack of reinstatement.
Some rental contracts call for a balloon payment at the end of the lease.
A balloon payment may be substantially larger than your other payments. Don't sign a contract that includes a balloon payment that you can't afford. You are not buying it. You are paying for the use of the item for a certain time period. You do not have to continue making payments if you choose to return the item.