Differentiate between deferred instalment and hire purchase methods of sale.

Question

Deferred Instalment MethodHire-Purchase Method(1) It is essentially a contract for sale. (1) It is essentially a contrac...

Accepted Answer

Deferred Instalment MethodHire-Purchase Method(1) It is essentially a contract for sale. (1) It is essentially a contrac...

Deferred Instalment Method	Hire-Purchase Method
(1) It is essentially a contract for sale.	(1) It is essentially a contract for hiring of goods.
(2) The ownership rights passes to the buyer immediately at the time when the agreement is entered into.	(2) The ownership rights remain with the seller and the customer exercises his option for purchasing the goods.
(3) The buyer can return the goods at any stage. The seller can also take back the goods in case of non-payment.	(3) In case of default in payment the seller can sue the buyer for balance instalments.