Sale and hire agreement.

A hire purchase agreement is a contract where by the owner of the goods lets them on hire to another person calle hirer or hire purchaser on payment of rent to be paid in instalment and upon an agreement that when a certain number of such paid.

Whether an agreement is a hire-purchase agreement or a contract of sale the test would be whether or not any option has been given to the hirer to terminate the contract.

Difference between a sale and a hire-purchase agreement:

Sale:

1.ownership is transferred from the seller to the buyer into.

2.the position of the buyer is that of the owner.

3.the buyer cannot terminate the contract and such as is bound to pay the price of the goods.

4.if the payment is made by the buyer in instalments, the amount payable by the goods.

Hire-purchase:

1.ownership is transferred from the seller to the hire-purchase only when a certain agreed paid.

2.the position of the hire-purchase is that of the ballee.

3.the hire-purchser has an option to terminate the goods the further instalments.

4.the instalment paid by the hire-purchaser are registered as hire charge and not as payment towords the price of the goods till excercised.