Match each hire purchase term with its correct legal definition or statutory requirement.
- HirerThe party who takes possession of goods with an option to purchase them by paying installments.
- OwnerThe party who lets goods to another under an agreement while retaining legal ownership until the final payment.
- Hire Purchase PriceThe total sum, including cash price and interest charges, payable by the bailor/buyer to complete ownership transfer.
- Statutory DepositThe mandatory initial down payment required by law before the agreement becomes enforceable.
Answer
Hirer matches with the party taking possession of goods with an option to purchase; Owner matches with the party who lets goods while retaining legal ownership; Hire Purchase Price matches with the total sum including cash price and interest; Statutory Deposit matches with the mandatory initial down payment required by law.
Each legal term corresponds directly to its defined statutory or commercial role: the hirer obtains possession with an option to purchase, the owner retains title until final payment, the hire purchase price is the grand total of all payments, and the statutory deposit is the mandatory initial down payment.
Step-by-Step Solution
Key Concept
Fundamental Roles and Terms under Hire Purchase Law