Question

Briefly explain the differences between hire purchase and credit sale

Answer 1

Hire-purchase transactions must be distinguished clearly from credit sales, in which the absolute ownership is immediately transferred to the purchaser, and in which , on default by the purchaser, the seller cannot repossess the goods, but can only sue for the unpaid instalments. But in case of hire purchase the hire- vendor has the right to repossess the goods so delivered if the hire purchaser makes default in making payment of any installment.

Answer 2

Answer:

Difference between hire-Purchase and Credit Sales Hire-purchase transactions must be distinguished clearly from credit sales, in which the absolute ownership is immediately transferred to the purchaser, and in which , on default by the purchaser, the seller cannot repossess the goods, but can only sue for the unpaid installments. But in case of hire purchase the hire-vendor has the right to repossess the goods so delivered if the hire purchaser makes default in making pay mentor any installment.