BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Final installment is paid
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Final installment is paid and purchaser agrees to a legal option to buy the asset
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On date of first installment in repayment
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Purchaser agrees to legal option to buy the asset
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Detailed explanation-1: -When, final installment is paid and purchased agrees to a legal option to but the asset, then the asset legally belong to the purchaser under a high purchase agreement.
Detailed explanation-2: -In case he fails to pay any of the instalments (even the last one) the hire vendor has the right to take back his goods without compensating the buyer, i.e., the hire vendor is not going to pay back a part or whole of the amount received through instalments till the date of default from the buyer.
Detailed explanation-3: -In hire purchase, ownership of the property is transferred to the hire on the payment of the last installment.
Detailed explanation-4: -In hire purchase system the last installment payable by buyer includes the cash price of installment and interest . The hire purchase act was passed in the year 1972 and looks after every hire purchase agreement.