Multiple choice

When the seller delivers the possession of goods to the buyer and not the ownership of goods and charges rent for the same, it is known as

  1. sale

  2. barter

  3. hire-purchase agreement

  4. none of these

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

 It is known as hire-purchase agreement because in this case, the seller delivers the possession of goods to the other person but not the ownership and charges rent for the goods. After receiving the price the ownership is transferred. For instance A transfers the possession of machinery to B and B pays rent for it to A. The ownership of machinery remains with  A ,so it is right answer here.