INTRODUCTION:- With an Increasing demand for better life, the consumption of
goods has been on the expending
sale. There are different ways by which goods can be sold. First is goods can
be sold for cash, Second is goods can sold for Hire-Purchase and third is sold
from Installment.
Under
Cash Sale the ownership and possession is immediately passed from seller
to buyer and buyer makes the payment in cash at the time of taking the delivery
of Goods.
Under
Hire-Purchase System the buyer acquires the possession of the goods immediately and
agrees to pay the total price in installment. Each installment treated as hire
charges until the payment of the payment of the last Installment when the
ownership of goods passes. The ownership of goods is transferred to the buyer
when the last Installment is paid. I the buyer default in the payment of the
Installment (Even last Installment) the Hire-Vendor has right to repossess the
goods without compensation the buyer. But buyer pays Installments regularly,
the Seller has no right to repossess the goods.
Under
Installment Purchase System the buyer acquires the possession & Ownership
of the goods immediately and payment of the total price will be made in
Installment if the buyer is any default in the payment of any Installment, the
Seller has no right to repossess the goods. Because the ownership of the goods
is transfer immediately from Seller to Buyer at the time of signing the
contract. He can only go to the court and sue the purchaser for unpaid balance.
FEATURE
OF HIRE-PURCHASES
1)
The
hire vendor transfer possession of goods immediately to the Purchaser
2)
The
Buyer will make Payment in Installment over a period of time.
3)
The Ownership of the goods will remain with the seller and
passed to the buyer on the payment of the last Installment.
4)
Each
Installment is treated as hire-Charges until the last Installment is paid.
5)
The
hire purchaser generally makes a down payment on signing the agreement.
6)
In case of default in respect of even the last Installment, the
hire vendor has the right to takes the goods back without making any
compensation.
FEATURE
OF INSTALLMENT PURCHASES
1)
The
buyer acquires possessions of the goods immediately at the time of agreement.
2)
The
Buyer will make Payment in Installment over a period of time.
3)
Each
Installment pay with some Interest.
4)
The
Ownership of the goods transfer of the goods at the time of agreement.
5)
The
hire purchaser generally makes a down payment on signing the agreement.
6)
In case of default in respect of even the last Installment, the
seller has no right to possess the goods. The Can only sues for unpaid balance.