Concepts of Hire-purchase .
Hire-Purchase:
A hire-purchase can be defined as a contractual arrangement under which the owner lets his goods on hire to hirer and offers an option to the hirer for purchasing the goods in accordance with the terms of the contract.
According to the hire-purchase Act,1972 and agreement which fulfills the following conditions is also a hire-purchase Agreement.
i.The possession of goods is delivered by the owner thereof to a person on condition that such person pays the agreed amount in periodic installment.
ii.The property in such goods is to pass to such person on the payment on the last of such instanllment .
iii.Such person has the right to terminate the agreement at anytime before the property so passes.
So,the distinct feature of a hire-purchase transactions are.
i.The option to purchase the goods at any time during the term of the agreement and.
ii.The right available to the hirer to terminate the agreement at any time before the payment of the last installment.
A hire-purchase can be defined as a contractual arrangement under which the owner lets his goods on hire to hirer and offers an option to the hirer for purchasing the goods in accordance with the terms of the contract.
According to the hire-purchase Act,1972 and agreement which fulfills the following conditions is also a hire-purchase Agreement.
i.The possession of goods is delivered by the owner thereof to a person on condition that such person pays the agreed amount in periodic installment.
ii.The property in such goods is to pass to such person on the payment on the last of such instanllment .
iii.Such person has the right to terminate the agreement at anytime before the property so passes.
So,the distinct feature of a hire-purchase transactions are.
i.The option to purchase the goods at any time during the term of the agreement and.
ii.The right available to the hirer to terminate the agreement at any time before the payment of the last installment.
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