Question

There are several steps to form a hire purchase agreement provided by Hire Purchase Act 1967. Discuss all the steps...


There are several steps to form a hire purchase agreement provided by Hire Purchase Act 1967. Discuss all the steps

Answer

In every organization, there are business products, commodities, and goods that are being manufactured. Globalization has hit the world because of digitalization and the use of the internet. In every marketing organization, there are two parties.

The buyers and the sellers are the two parties. There is a procedure that involves the hire purchase system. There may be two parties involved in the transaction of this system. The hire purchase system is followed in different countries like India, United Kingdom, Australia.

Consumer goods are expensive and they are purchased through the hire purchase system in an organization. Basically, in the hire purchase system, there is an installment system. The consumer goods are bought in installments by the consumer, Basically, this system is followed in countries like the United States of America.

In a hire purchase system, ownership is not transferred to the owner till the full payments are made by an individual who is purchasing the goods. Hire purchase systems are a bit expensive system of buying the goods, products, and commodities in an organization.

In the hire purchase system, the goods are purchased on credit. Machines, etc. for construction processes are purchased through the hire-purchase system. However, the parties have to give very high interest in certain raw materials purchased. This act was later revised in the year 1978.

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