Question

In hire purchase, ownership of the property is transferred to the hirer on the payment of the ______ instalment.

A) First
B) Second
C) Third
D) last

Answer 1

Hint: To proceed with the question of hire purchase we first need to know that system of hire purchase and then we proceed to go for the answer of the asked question.

Complete step-by-step answer:
To solve this question, we need to first know that theory of Hire purchase first.
Hire purchase system-A person (buyer) wants to purchase an asset, but does not want to make a lump sum payment then he may opt to pay in instalments if the vendor agrees. This enables buyers to use the asset while paying for it in instalments over an agreed period of time. This arrangement is known as hire purchase.

Now we will see some terms in this agreement are as follows:
a. Hire purchaser- it is a person who obtains goods (asset) and its right to use from a vendor under the agreement.
b. Hire vendor- it is the person who delivers goods along with its possession to the hire purchaser.
In hire purchase, ownership of the property is transferred to the hire on the payment of the last instalment.
Therefore, we got the answer as (d) last option.

Note: The point to note in the question is that hire purchase is a system where a person (buyer) wants to purchase an asset, but does not want to make a lump sum payment then he may opt to pay in instalments if the vendor agrees.