Question

Five main characteristics of hire purchase.

Answer 1

Hire purchase system is the special system for purchase and sale of goods and services by paying the amount in the form of weekly, monthly or quartly installments.

Features of hire purchase are - -

1)) Amount paid by the buyer to seller in installments

2)) Special method of purchase and sales of goods and services.

3)) Ownership can't transfer from seller to buyer till the last installments. by the buyer.

4)) Purchase agrees to pay tge payment on goods and services for purchase it..

5))If payment not received by the seller till the last day of installments then seller has right of possessive to get back goods till the date of last installments..

6)) Goods delivered by the seller to the buyer at the date mentioned in agreement

Answer 2

Explanation:

The characteristics of a hire purchase agreement are -

1. The hirer (buyer) pays the hiree (usually the vendor), in

installments over a specified period of time.

2. The buyer can possess the goods immediately.

3. The ownership of the goods remains with the vendor till

the last installment is paid.

4. In case of default the vendor can repossess the goods and

the amount received as installments will be considered as hire charged for that

period.

5. The installments include interest and repayments of

principal.

6. Usually, the vendor charges interest at a flat rate.

The rights of a hirer -

1. The vendor has to give an advance written notice if he

wants to terminate the agreement.

2. In certain cases the vendor cannot repossess the goods

without the sanction of the Court.