1.

Give any three points of distinction between ‘Deferred Installment Method’ and ‘Hire Purchase Method’ of Purchase. 

Answer»

Difference between ‘Deferred Installment Method’ and ‘Hire Purchase Method’ of Purchase: 

Deferred Installment Method Hire Purchase Method
It is essentially a contract for sale.It is essentially a contract for hiring of goods.
The ownership rights passes to the buyer immediately at the time when the agreement is entered into.The ownership rights remain with the seller and the customer exercises his/her option for purchasing the goods. 
The buyer can return the goods at any stage. The seller can also take back the goods in case of non-payment.In case of default in payment the seller can sue the buyer for balance installments. He can take back the possession of the goods. But the buyer cannot return the goods and adjust the amount of payment due.


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