Question

features of installment payment system and features of hire purchase system ​

Answer 1

Features Of Installment Purchase System

The following are the features of installment purchase system:

1. Installment purchase system is just like an outright credit sale of goods.

2. The buyer makes the payment in different installment over a period of time as agrees upon in the agreement.

3. Under installment purchase system, the buyer gets the immediate possession as well as the ownership of goods.

4. The seller can not responses the good if the buyer made default in the payment of installment but he/she can sue against the buyer for the recovery of amount due.

5. In case of default in the payment of installment, the total amount of installments already paid by the buyer can not be forfeited.

6. Under installment system, the buyer can sell or mortgage the goods even before clearing all the installments.

7. Risk of goods/assets are to be borne by the buyer just after signing the agreement.

8. The buyer of the goods under installment purchase system has no right to return the goods to the seller.

Answer 2

Answer:

The required Features Of Installment Purchase System s shown below:

Explanation:

The benefits of an instalment purchase arrangement include the following:

1. An outright credit sale of products is exactly like an instalment purchase scheme.

2. In accordance with the terms of the agreement, the customer pays in a series of instalments over time.

3. The purchaser receives both instant possession and ownership of the products under the instalment purchase method.

4. If the purchaser defaulted on an instalment payment, the seller could still take legal action to reclaim the outstanding balance.

5. The complete amount of instalments already paid by the buyer cannot be lost in the event of an instalment payment default.

6. With the instalment plan, the buyer has the option to sell or mortgage the products before paying for all of the instalments.

7. The buyer is responsible for assuming any associated risks as soon as the agreement is signed.

8. The purchaser of products using an instalment payment plan is not entitled to send such things back to the seller.

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