Question

State the rights of hire vendor and hire purchaser case of hire purchase system

Answer 1

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The Hire purchase system comes under the Hire Purchase Agreement Act, 1972. There are two parties in the Hire purchase system. One is the buyer who is known as Hire purchaser or Hirer and the other is the saler who is known as Hire saler or Hire vendor. The agreement between the Hire purchaser and Hire saler is called Hire purchase agreement. In this system, the hire purchaser pays a certain amount, known as down payment, to the hire vendor, which is a portion of the cash price of the good on the date of signing the hire purchase agreement and immediately posses the good. The balance amount of the total cash price of the good is paid in installments along with interest after some periodical intervals.

▪︎ Some of the rights enjoyed by a hire vendor are as follows :

(i) Right to get the full payment for the goods sold under hire purchase system.

(ii) Right to terminate the hire purchase agreement for default in payment of hire or unauthorized act or breach of express conditions contained in the hire purchase agreement by the hirer.

(iii) Right to forfeit the initial deposit on termination of the hire purchase agreement.

(iv) Right to recover possession of the goods on termination of the hire purchase agreement.

(v) Right to clain damage for non-delivery of the goods from the date on which termination of the hire purchase agreement is effective to the date on which goods are delivered to or seized by the owner.

▪︎Some rights of a hire purchaser are as follows :

(i) Right to get possession of the goods on the date of signing the hire purchase agreement.

(ii) Right to purchase the goods at any time with rebate.

(iii) Right to terminate the hire purchase agreement at any time before the final payment.

(iv) Right to appropriate payments in respect of two or more agreements.

(v) Right to seek Court's sanction for repossession of goods by the hire vendor, if the hire purchsse price is less than Rs. 15000 and ½ of the hire purchase price has been paid or if the hire purchase price is more and ¾ of the hire purchase price has been paid.

Answer 2

Answer:

the rights of hire vendor and hire purchaser case of hire purchase system

Explanation:

features of hire buy device

Claiming rights: In case hirer fails to make a charge, rent seller can sue or claim best for the return of the asset and no longer for the remaining due installment payments. selling Rights: Hirer cannot promote or loan the employed asset untill ownership receives transferred to the them.

it is handiest after paying off the whole price of the goods, the hirer turns into the proprietor of the products underneath a rent-purchase settlement. moreover, the vendor has the proper to repossess the products in case of default by means of the hirer. most noteworthy, the seller has the choice to return the products.

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