What is the difference between the hire purchase vs bailment?

Question

Answer

Hire Purchase:

Hire purchase is a type of agreement in which the buyer takes possession of goods immediately but pays for them in installments over a set period of time.

The ownership of the goods remains with the seller until the buyer has made all of the payments, including any interest or fees.

The buyer has the option to purchase the goods outright at the end of the agreement.

If the buyer defaults on payments, the seller has the right to repossess the goods.

Hire purchase agreements are commonly used for purchasing cars, furniture, and other large items.

Bailment:

Bailment is a legal relationship in which one person (the bailor) gives possession of property to another person (the bailee) for a specific purpose.

The bailee has a duty to take care of the property and return it to the bailor when the purpose of the bailment has been fulfilled.

The bailor retains ownership of the property throughout the bailment.

Bailment can be for mutual benefit or for the benefit of one party.

Examples of bailment include leaving your car with a valet, giving your jewelry to a jeweler for repair, or storing your furniture with a moving company.

Differences:

Hire purchase involves the buyer taking possession of goods immediately, while bailment involves the bailee taking possession of property for a specific purpose.

In hire purchase, the buyer makes payments over time and has the option to purchase the goods outright at the end of the agreement, while in bailment, the property is returned to the bailor when the purpose of the bailment is fulfilled.

In hire purchase, the ownership of the goods remains with the seller until all payments are made, while in bailment, the bailor retains ownership throughout the bailment.

Hire purchase is commonly used for purchasing large items, while bailment can be used for a variety of purposes, such as storage, repair, or transportation.

In summary, hire purchase and bailment are two distinct legal arrangements with different purposes and features. Hire purchase involves the buyer taking possession of goods immediately and making payments over time, while bailment involves the bailee taking possession of property for a specific purpose and returning it to the bailor when that purpose has been fulfilled.

Answer

bailment- only transfer of possession (for particular purpose).. bailee must return the goods. hire purchase -goods passes to hirer at last installment..

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