Multiple choice

In case of a hire - purchase the hirer

  1. can pass a goods title to a bonafide purchaser

  2. cannot pass a goods title to a bonafide purchaser

  3. can choose whether to pass or not to pass the goods title to a bonafide purchaser

  4. all of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

In hire-purchase agreements, ownership (title) remains with the seller until the final installment is paid and the option to purchase is exercised. Since the hirer only has possession and use, not ownership, they cannot transfer valid title to a bona fide purchaser. This protects the original owner's property rights.

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