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In case of a hire- purchase, the hirer:
- a)Can pass a good title to a bonafide purchaser
- b)Cannot pass a good title to a bonafide purchaser
- c)Can choose whether to pass or not to pass the title
- d)All of these
Correct answer is option 'B'. Can you explain this answer?
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Verified Answer
In case of a hire- purchase, the hirer:a)Can pass a good title to a bo...
In the case of a sale, the buyer can pass a good title to a bonafide purchaser from him but in a hire-purchase, the hirer cannot pass any title even to a bonafide purchaser.
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Most Upvoted Answer
In case of a hire- purchase, the hirer:a)Can pass a good title to a bo...
Explanation:
Hire-purchase is a type of agreement where the hirer pays for the goods in installments and becomes the owner of the goods after paying the final installment. However, until the final payment is made, the owner of the goods is the hire-purchase company. In this arrangement, the hirer cannot pass a good title to a bonafide purchaser.
Reasons why hirer cannot pass a good title to a bonafide purchaser:
1. Ownership of the goods: Until the final payment is made, the owner of the goods is the hire-purchase company. Therefore, the hirer does not have the legal right to sell or transfer ownership of the goods to a third party.
2. Security interest: The hire-purchase company has a security interest in the goods until the final payment is made. This means that if the hirer sells or transfers the goods to a third party, the hire-purchase company can still repossess the goods if the hirer defaults on the payments.
3. Legal implications: If the hirer sells or transfers the goods to a third party, it can result in legal implications for both the hirer and the bonafide purchaser. The hire-purchase company can take legal action against the hirer for breach of contract and the bonafide purchaser may not have a legal right to the goods.
Conclusion:
In conclusion, the hirer cannot pass a good title to a bonafide purchaser in a hire-purchase agreement as the ownership of the goods is with the hire-purchase company until the final payment is made. It is important for both the hirer and the bonafide purchaser to understand the legal implications of selling or transferring goods in a hire-purchase agreement.
Hire-purchase is a type of agreement where the hirer pays for the goods in installments and becomes the owner of the goods after paying the final installment. However, until the final payment is made, the owner of the goods is the hire-purchase company. In this arrangement, the hirer cannot pass a good title to a bonafide purchaser.
Reasons why hirer cannot pass a good title to a bonafide purchaser:
1. Ownership of the goods: Until the final payment is made, the owner of the goods is the hire-purchase company. Therefore, the hirer does not have the legal right to sell or transfer ownership of the goods to a third party.
2. Security interest: The hire-purchase company has a security interest in the goods until the final payment is made. This means that if the hirer sells or transfers the goods to a third party, the hire-purchase company can still repossess the goods if the hirer defaults on the payments.
3. Legal implications: If the hirer sells or transfers the goods to a third party, it can result in legal implications for both the hirer and the bonafide purchaser. The hire-purchase company can take legal action against the hirer for breach of contract and the bonafide purchaser may not have a legal right to the goods.
Conclusion:
In conclusion, the hirer cannot pass a good title to a bonafide purchaser in a hire-purchase agreement as the ownership of the goods is with the hire-purchase company until the final payment is made. It is important for both the hirer and the bonafide purchaser to understand the legal implications of selling or transferring goods in a hire-purchase agreement.
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In case of a hire- purchase, the hirer:a)Can pass a good title to a bo...
Cannot pass a good title to a bonafide purchaser means property not transfered only possesion tranfered
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In case of a hire- purchase, the hirer:a)Can pass a good title to a bonafide purchaserb)Cannot pass a good title to a bonafide purchaserc)Can choose whether to pass or not to pass the titled)All of theseCorrect answer is option 'B'. Can you explain this answer?
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