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WAEC Commerce 1998 Question 17

Question 17

Purchase and Sale of Goods

Which of the following is not a feature of hire purchase?

  1. A.Customer pays initial deposit
  2. B.Customer pays purchase price plus interest
  3. C.Payment is by instalment
  4. D.Ownership of goods passes to the customer on payment of a deposit
  5. E.Generally suitable for sale of durable goods
Show the answer and explanation

Answer: D (Ownership of goods passes to the customer on payment of a deposit)

Explanation

Under hire purchase, ownership passes only after the last instalment, not on paying the deposit.