Distinguish in three ways between a “hire purchase agreement” and a “conditional sale agreement”
|Hire purchase||conditional sale agreement|
|– The hirer has the option to terminate the agreement at any time by giving notice in writing to owner.
– Hire purchase is intended to protect the owners to the goods should the hirer decide to sell them to a 3rd party who buys in good faith before full installments is paid.
|– The buyer is committed to paying the full price for the goods.
– This contract makes if the buyer’s obligation to buy but property in goods passes to the buyer only if the conditions that form the subject matter of the sales have been fulfilled.