An agreement for the bailment of goods with an option to buy the goods is a contract of:

A. Sale of goods
B. Hire purchase
C. Pledge
D. Mortgage
E. Conditional sale

 

Answer:

B. Hire purchase

Explanation:

A hire purchase agreement is a type of contract where goods are bailed to the hirer, with an option for the hirer to purchase the goods at a later stage. The hirer pays periodic installments, and ownership of the goods is transferred only when the final payment is made. This distinguishes it from other forms of agreements like a sale of goods or pledge, where the ownership or possession terms differ.

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