- 1 Marks
Question
In a hire purchase transaction, the hirer becomes the owner of the good when he
A. Pays a certain amount
B. Is in possession
C. Executes the agreement
D. Exercises the option to purchase as provided in the agreement
E. Completes the installment payments
Answer
Answer: E. Completes the installment payments
Explanation:
Ownership transfers only when the hirer has completed all installment payments as specified in the hire purchase agreement.
- Tags: Agreement, Hire Purchase, Ownership
- Level: Level 1
- Topic: Hire Purchase and Consumer Credit Transactions
- Series: MAY 2016
- Uploader: Kwame Aikins