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HomeCA FoundationbusinesslawSale of Goods — Formation of the Contract of Sale › In a hire-purchase agreement (as distinguished f…

In a hire-purchase agreement (as distinguished from a sale), the position of the hirer until the last instalment is paid is that of:

AA pledgee
BAn owner
CA bailee
DA trustee
Answer & Solution
Correct answer: C. A bailee
In hire-purchase the hirer is a bailee until the final instalment; property and the power to pass good title arise only on payment of the last instalment, and the hirer may return the goods.
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