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A hire-purchaser, who holds goods with only an option to buy, sells them before paying all instalments. The buyer:
AMust pay the remaining instalments to keep the goods
BGets a good title
CBecomes owner immediately
DGets no better title, since the hirer is neither owner nor a buyer who has agreed to buy
Answer & Solution
Correct answer: D. Gets no better title, since the hirer is neither owner nor a buyer who has agreed to buy
A hire-purchaser with a mere option to buy cannot pass good title; the owner can recover the goods from the transferee (unlike a true agreement to buy).
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