Question

What is the name of the seller under hire purchase system?
a. hirer
b. buyer
c. debtor
d. hire vendor

Answer 1

Hint: We will take reference of the basic definition of each term like hirer, buyer, debtor and hire vendor. We will use the fact that in the hire purchase system, hire purchase is a credit purchase in which the price under hire purchase system is paid in installments.

Complete step-by-step answer:
It is given in the question that we have to write the name of the seller under the hire purchase system. Basically under the hire purchase system, the hire purchaser gets the possession of the goods at the outset and uses it while paying for it in installments over a fixed period of time as per the agreement.
So, we can say that the hire purchase is a credit purchase and the price of the product is paid in installments.
Now, we have the given terms as,
(a) Hirer: So, the hirer is defined as a person who employs someone else. For example, a company boss is a hirer.
(b) Buyer: A person who consumes or buys the product is called buyer. For example, we ourselves are buyers because we buy products.
(c) Debtor: A debtor is a person who owns money. For example, trade debtors.
(d) Hire vendor: A hire vendor is a person who delivers the goods to the hire purchase with the intention to sell the goods under the hire purchase agreement.
Thus, from the above discussions, we get to know that hire vendor is the most suitable name of the seller under the hire purchase system.
Therefore, option (d) is the correct answer.

Note: It is observed that most of the students get confused in two options, that are options (a) and (d) because of a common word ‘hire’. As a result they may choose option (a) as the answer, but it is actually wrong. So, the students must know that hirer and hire vendor are two different words.