Multiple choice

A hire purchase is a bailment as well as an agreement to sell.

  1. True

  2. False

  3. Partly true

  4. Cannot say
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A hire purchase agreement combines elements of bailment (possession without ownership) and an agreement to sell (ownership will transfer on final payment). The hirer has possession (bailment) and there's an agreement that ownership will transfer after all payments are made.

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