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Hire purchase and Leasing

Total questions: 20

Worksheet time: 8mins

Name
Class
Date
1.

Person who takes or has taken goods from an owner under a hire-purchase agreement is a _______________.

a)

Hirer

b)

Dealer

c)

Guarantor

d)

Owner

2.

According to _________ Hire Purchase Act, the hire purchase agreement must be in writing.

a)

Section 4A

b)

Section 4B

c)

Section 4C

d)

Section 5

3.

Within _____ days after the making of the agreement, the owner must serve on the hirer and guarantors each with copy of the agreement

a)

7

b)

14

c)

21

d)

28

4.

Duty of a ___________ is to make monthly payment for monthly installments for the purchase of goods.

a)

Guarantor

b)

Owner

c)

Dealer

d)

Hirer

5.

There must be at least ______ successive defaults in payment of the monthly installments

a)

2

b)

3

c)

4

d)

5

6.

Duty of the owner and/or dealer to serve the hirer _____ Schedule notice for the intention to repossess.

a)

2nd

b)

3rd

c)

4th

d)

5th

7.

If hirer pays the default within ____ days of service of the 4th schedule notice, the repossession would not be carried out.

a)

7

b)

14

c)

21

d)

28

8.

Owner cannot sell or dispose off the repossessed goods without written consent hirer until the expiration of the 21 days after the date of service of the __________ schedule notice to hirer

a)

1st

b)

2nd

c)

4th

d)

5th

9.

A ________ is a person who guarantees to the owner that the hirer would perform his obligations and normally in hire-purchase agreements undertakes to repay the hirer’s debt to the owner should the hirer fail to pay the debt by the due date.

a)

Owner

b)

hirer

c)

guarantor

d)

dealer

10.

If agreement is not signed or is signed without having being completed, the agreement shall be _________.

a)

Valid

b)

Void

c)

Voidable

d)

Void ab initio

11.

Leasing comes under which section ..........

a)

Section 63(12)

b)

Section 65(12)

c)

Section 65(10)

d)

Section 64(22)

12.

Leasing comes under the following ACT.......

a)

Finance Act, 1994

b)

Finance Act,1992

c)

Finance Act,1996

d)

Finance Act,2013

13.

Who owns the asset is a ......

a)

Lessor

b)

lessee

14.

Who owes the asset from its owner is a ......

a)

Lessor

b)

Lessee

15.

India leasing industry is at which place at world ....

a)

15

b)

14

c)

13

d)

9

16.

The first leasing Industry was established in .....

a)

SEP 10,1984

b)

Sep 10,1973

c)

Sep 10,1942

d)

Sep 10,1996

17.

Leasing companies are categorized under (a)  

18.

There were no entry restrictions to leasing business till ....

a)

1994

b)

1996

c)

2013

d)

1984

19.

To form a Leasing contract, there must be

a)

lessor and lessor

b)

lessee and lessor

c)

lessee and lessee

d)

only lessor

20.

Leasing is a contract between parties

a)

True

b)

False