Question

Differences between hire purchase and deferred payments

Answer 1

Answer:

The monthly or period payment in installment purchase is termed as installment whereas, in hire purchase arrangement, it is called hire charges. Installment derives its value from the length of time, the sale value of an asset, and interest rate whereas the hire charges is a function of two additional factors viz.

Answer 2

The hire and deferred payments.

Explanation:

• A deferred payment method is an installment method that is a compulsory contract for sale. While a hire purchase method is a contract for the hiring of goods.

• Under the deferred method, the owner's right passes to the buyer immediately at the time when the agreement is made.

• While in hire purchase the owner's rights remain with the seller and customer who exercise this option to purchase this good.

• In the deferred method, the buyer can return the goods at any time and the seller can take back goods in non-payments.

• In the hire purchase method, the default in payment is made the seller can sue the buyer for a balance in installment.

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• brainly.in/question/12826610 answered by VEDATsayer.