A hire purchase transaction becomes a sale when when the

Assessment: WAEC SSCE - Commerce - 1999 (Objective) Subject: Commerce

Question 1 Report

A hire purchase transaction becomes a sale when when the
Answer Details
In a hire purchase transaction, ownership of the goods initially remains with the seller or the finance company. The hirer makes regular payments, usually monthly, to the finance company until the total cost of the goods plus interest is paid off. The transaction becomes a sale when the hirer pays the full cost of the goods. At that point, ownership of the goods transfers from the seller or finance company to the hirer. The hirer then becomes the outright owner of the goods and the hire purchase agreement comes to an end.
Read lesson note on Purchase And Sale Of Goods (JAMB)
Read lesson note on Commerce (JAMB)
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