Question

Differences between hire purchase and credit sale.

Answer 1

Answer:

A hire purchase, known as installment plan is an arrangement whereby a customer agrees to a contract to acquire an asset by paying an initial installment and repays the balance of the price of the asset plus interest over a period of time. Other analogous practices are described as closed-end leasing or rent to own.

while in credit sale, the parties are seller and buyer. is a contract of sale whether a hire purchase agreement is a contract of hiring. Previous: Explain the remedies available to an unpaid seller against:(i) The goods; (ii) The buyer under the Sale of Goods Act.

Explanation:

A hire purchase, known as installment plan is an arrangement whereby a customer agrees to a contract to acquire an asset by paying an initial installment and repays the balance of the price of the asset plus interest over a period of time. Other analogous practices are described as closed-end leasing or rent to own.