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WAEC Commerce 2016 Question 40

Question 40

Purchase and Sale of Goods

Goods become the property of the buyer on the transfer of liability and: possession without immediate payment under the

  1. A.hire purchase agreement.
  2. B.credit sale agreement.
  3. C.auction sales agreement.
  4. D.conditional sales agreement.
Show the answer and explanation

Answer: B (credit sale agreement.)

Explanation

In a credit sale, ownership passes to the buyer at once although payment is made later; under hire purchase ownership passes only after the last instalment.