- 1 Marks
Question
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
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.
- Tags: Bailment, Consumer Credit, Contract Law, Hire Purchase
- Level: Level 1
- Topic: Hire Purchase and Consumer Credit Transactions
- Series: MAY 2024
- Uploader: Dotse