BL – May 2012 – L1 – SA – Q6 – Hire Purchase and Consumer Credit Transactions

Identifying the obligation that does not fall under a hirer's responsibility.

Question

Which of the following is NOT a hirer’s obligation?

A. To take delivery of the goods
B. To take proper care of the goods
C. Not to part with the possession of the goods
D. To report to the owner every week
E. To return the goods to the owner when the agreement is terminated

Answer

D. To report to the owner every week

Explanation:
Under a hire purchase agreement, a hirer is typically required to take delivery of the goods, take care of them, avoid transferring possession, and return the goods upon the termination of the agreement. However, the obligation to report to the owner every week is not a standard requirement in hire purchase agreements.

Tags: Business Law, Consumer Credit, Hire Purchase
Level: Level 1

Topic: Hire Purchase and Consumer Credit Transactions
Series: MAY 2012

Uploader: Theophilus