Identify Which of the Following Statements Correctly Describes a Hire-Purchase

question 62

Multiple Choice

Identify which of the following statements correctly describes a hire-purchase agreement.

• A)The contract does not create a bailment and the hirer has no contractual obligation to pay the purchase price.
• B)The contract gives the hirer a lien on the goods preventing the owner from selling the goods to another.
• C)This is simply another name for a chattel mortgage on an automobile.
• D)The contract creates a bailment,but the hirer has a contractual obligation to pay the purchase price.
• E)The contract creates a bailment and the hirer has an option to purchase the item at the end of the stipulated term.

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