Law of Hire-Purchase

According to Hire-Purchase Act 1967, hire-purchase agreement must be in writing and must be signed by ( ).

• all parties to the agreement

• the owner

• the hirer

• the second purchaser

Goods also include replacements and renewals by the hirer of any part or parts and any accessories added or additions made by the hirer during ( ).

• the 21 days of repossession

• the hirer opt for purchasing the asset

• the formation of hire purchase agreement

• the period of the hiring

If an agreement does not fall within the ambit of the Hire-Purchase Act and is also not a bill of sale, it will not be a valid hire-purchase agreement under the common law also.

• True

• False

Hire-purchase transaction can be compared with a lease agreement.

• True

• False

The ( ) is important in situations where the consumer is not allowed to purchase goods on hire-purchase.

• hire purchase agreement

• lease agreement

• tenancy agreement

• agreement to sell

A hire-purchase agreement is more than a simple contract of hire for it confers upon the hirer an option to ( ).

• rent out the goods

• sell off the goods

• purchase the goods

• puts the goods onto auction

Under a hire purchase agreement, the owner is allowed to repossess and resell the goods within 21 days when payment fall behind.

• True

• False

"A person by whom negotiations leading to the making of a hire-purchase agreement are carried out." Which of the following refers to the description?

• purchaser

• hirer

• owner

• dealer

The title to the goods remains with who throughout the period of hire-purchase?

• the seller

• the owner

• the hirer

• the dealer

In a case where negotiations leading to the making of the hire-purchase agreement is carried out by any person who would be the owner under the hire-purchase agreement to be entered into, or by any person, other than the dealer, acting on his behalf, such person shall serve on the intending hirer a written statement duly completed and signed by him.

• True

• False