Distinguish between a sale by hire purchase from an ordinary credit sale of goods
Answers
Answer:
Explanation:) the cash price of the goods;
(b) the interest rate imposed;
(c) the period of installments;
(d) the monthly amount payable;
(e) the total price of the goods inclusive of interest;
(f) the ancillary charges;
(g) the delayed payment charge and its formula of calculation;
(h) the total price of the goods inclusive of interest and ancillary charges;
(i) the formula for calculation of rebate;
(j) whether the purchase of goods is subject to a rebate when the goods are promotional goods or when other goods are offered to as a prize for the goods sold; and
(k) the date of delivery of the goods.
The above information shall also be made part of the credit sale agreement entered between the seller or credit facility provider and the purchaser.
The terms and conditions in a credit sale agreement must also include the following details:
(a) the termination of the credit sale agreement;
(b) the implications of default under the credit sale agreement; and
(c) the consultation for settlement with the seller or credit facility provider in the event of default by the purchase.
Hire purchase
a) whereby the property in the goods comprised therein passes at the time of the agreement or upon or at any time before delivery of the goods; or
(b) under which the person by whom the goods are being hired or purchased is a person who is engaged in the trade or business of selling goods of the same nature or description as the goods comprised in the agreement.
Both credit sale and hire purchase are thus common but different methods of supplying goods under a credit agreement.
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Explanation:
Explanation:) the cash price of the goods;
(b) the interest rate imposed;
(c) the period of installments;
(d) the monthly amount payable;
(e) the total price of the goods inclusive of interest;
(f) the ancillary charges;
(g) the delayed payment charge and its formula of calculation;
(h) the total price of the goods inclusive of interest and ancillary charges;
(i) the formula for calculation of rebate;
(j) whether the purchase of goods is subject to a rebate when the goods are promotional goods or when other goods are offered to as a prize for the goods sold; and
(k) the date of delivery of the goods.
The above information shall also be made part of the credit sale agreement entered between the seller or credit facility provider and the purchaser.
The terms and conditions in a credit sale agreement must also include the following details:
(a) the termination of the credit sale agreement;
(b) the implications of default under the credit sale agreement; and
(c) the consultation for settlement with the seller or credit facility provider in the event of default by the purchase.
Hire purchase
a) whereby the property in the goods comprised therein passes at the time of the agreement or upon or at any time before delivery of the goods; or
(b) under which the person by whom the goods are being hired or purchased is a person who is engaged in the trade or business of selling goods of the same nature or description as the goods comprised in the agreement.
Both credit sale and hire purchase are thus common but different methods of supplying goods under a credit agreement.