Question

Which of the following is not correct in relation to hire purchase?

• A. The property in goods passes to hirer along with its possession
• B. The hirer is deemed to be a bailee till the payment of last instalment
• C. The hirer can terminate the Contract by returning the goods
• D. The hirer cannot transfer any title

Answer 1

The correct option is A The property in goods passes to hirer along with its possession

The property in goods passes to hirer along with its possession- this is not correct in relation to hire purchase.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.