Question

Differentiate between deferred instalment and hire purchase methods of sale.

Answer 1

Answer:

Deferred Installment - It has its basic importance in the contract for sale. In case of non payment the seller can take the good at anytime or the product may be returned to the buyer at any time. The ownership right passes to the buyer immediately after purchase of the product.

Hire Purchase Methods of Sale-  It has its basic importance in contract for hiring goods. In case of non payment the good is not returned to the seller.

The ownership right remains to the seller in this type of method.