Hey Friend,
Before understanding what is transferred to hirer under hire purchase system, let us first understand what is this hire purchase system. An agreement signed while purchasing pricey things is known as hire purchase. A down payment is made by the customer at the time of purchase, and the remaining balance will be paid off over time with interest. A mortgage is a notion that is comparable to a hire purchase, despite the fact that it is not very common in India.
Run due diligence with NoBroker Legal Services while buying a propertyTypically, a mortgage entails pledging a previously owned item by the borrower in exchange for cash; as long as the debt is repaid, ownership of the pledged property passes to the lender. In a hire purchase, the borrower makes a new product purchase.
In both situations, the lender will become the legal owner of the purchased items after the borrower makes full payment of the debt.
What is transferred to hirer under hire purchase system?In a hire-purchase agreement, the property's ownership passes to the hire upon completion of the last payment.
The idea of rent to own is quite comparable to hire purchase. A car or property's rent will be paid over time by the lessee. The option to purchase the asset or vehicle at any moment is available to the lessee if he pays the actual sale price.
Due to the ability to stretch out the expense over a number of years as opposed to having to pay a sizable sum all at once, customers use this choice to acquire pricey things. Once more, until all payments have been made, the borrower will not be the owner of the object. If the borrower misses a payment, the lender may seize the object or sell it to cover the arrears.
I would like to conclude here about what is transferred to hirer under hire purchase system. I hope this helps:)
Read More:
What is a Hire Purchase Agreement? Meaning and DefinitionAuthors Of The Question
What is Transferred to Hirer Under Hire Purchase System?
Samiksha
263Views
1 Year
2022-11-02T17:27:31+00:00 2022-11-07T09:58:12+00:00Comment
1 Answers
Share