- 1 Marks
Question
An agreement to buy goods and subsequently pay for it by installments on the term that ownership will pass when the final installment is paid is:
A. A credit sale
B. A hire purchase
C. A conditional sale
D. An outright sale
E. A provisional sale
Answer
B. A hire purchase
Explanation:
A hire purchase sale is an agreement where the buyer takes possession of the goods but ownership (title) does not pass until all payments, usually in installments, have been completed.
- Tags: Installment Sale, Ownership, Sale of Goods
- Level: Level 1
- Topic: Sale of Goods
- Series: MAY 2014
- Uploader: Theophilus