A3 HIRE PURCHASING SYSTEM VS INSTALLMENT PURCHASING SYSTEM:
S.No
|
Hire-Purchase
|
Instalment
Purchase
|
1.
|
Title in the goods transfers only after
the last installment is paid
|
Title in the goods passess to the
purchaser immediately after the agreement
|
2.
|
The installment paid before the last installment
would be treated as hire charges
|
Each installment is treated as payment towards
principal and interest.
|
3.
|
The agreement can be cancelled anytime
before the last installment is paid
|
There is no such right to the purchaser
|
4
|
The seller has the right to repossess
the goods in case the purchaser is in default of installment
|
The sell has no such right but he can
file a suit for process of the goods and damages
|
5.
|
The hire purchaser cannot sell the
goods, as he has no title
|
The hire purchaser can sell the goods,
as he has titles.
|
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