Question

In case of Hire purchase Agreement the onus of the risk of the loss of goods is on.

• A. Hirer
• B. Owner of goods.
• C. The buyer of the goods
• D. None of the above

Answer 1

The correct option is B Owner of goods.

Hirer is the party availing the facility in the hire- purchase agreement. Under hire-purchase agreement, the goods are let on hire and in accordance with the terms of the agreement hirer can purchase the good.In case of Hire purchase Agreement during the hiring period the goods are in possession of the hirer but the ownership of the goods is with the original owner. Thus, the onus of the risk of the loss of goods is on the owner of goods.