QUESTION- Distinguish Between Agreement to Sell and Hire Purchase Agreement
Agreement to sell & Hire purchase Agreement
a) An agreement to sell can be in writing or oral
a) Hire purchase agreement must be in writing.
b) Possession: the buyer may or may not get possession of the goods.
b) Possession: The buyer gets possession of the goods and enjoys them.
c) Generally businessmen and consumers may enter into an agreement to sell with the purpose of resale of goods or to enjoy them.
c) Consumers without sufficient money, but interested in the goods, enter into hire purchase agreement for the purpose of enjoying the goods.
d) Under this, if a person buys any goods and subsequently sells them to a third party, the third party acquires a good title.
d) A hire-purchase is not entitled to sell the goods until all the installments are paid because until then the ownership lies with the vendor.
e) Under this, a buyer is entitled to claim implied conditions and warranties.
e) A hire-purchase cannot claim the benefits of implied conditions and warranties given by the law as the sale is not completed.
f) An agreement to sell imposes a legal obligation on the buyer to purchase it.
f) A hire-purchase has the liberty to opt whether to continue to pay the installments or put an end to it.
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