Distinction Between Hire Purchase and Instalment System Sample Contracts
Distinction betweenDistinction Between Hire Purchase and Instalment System • April 12th, 2020
Hire Purchase System Instalment System 1] Governing Act: It is governed by The Hire Purchase Act,1972. It is governed by The Sale of Goods Act,1930 2] Nature of Contract: It is an agreement of hiring. It is an agreement of sale. 3] Ownership: The title of goods passes on payment oflast instalment. The title to goods passes immediately asin the case of usual sale. 4] Parties involved: The parties involved are called hirer andhire vendor. The parties involved are called buyer andthe seller. 5] Relationship between parties involved: The relationship between hirer and hire vendor is that of Bailee and Bailor. The relationship between the buyer and the seller is that of a debtor and a creditor till the payment of lastinstallment. 6] Component other than cash price: Component other than cash price included in instalment is called HireCharges. Component other than cash price included in installment is called Interest. 7] Right to return goods: The hirer may return goods without further pa