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WAEC Commerce 1995 Question 64

Question 64

Purchase and Sale of Goods

In a hire purchase contract the customer becomes the legal owner of the goods by

  1. A.taking possession of goods
  2. B.paying the first instalment
  3. C.paying the last instalment
  4. D.paying monthly hire charges
  5. E.paying half the purchase price.
Show the answer and explanation

Answer: C (paying the last instalment)

Explanation

Under hire purchase, ownership passes only when the last instalment is paid.