What are the differences between contract of sale and hire purchase?

When a sale is made, the ownership of goods is transferred immediately to the buyer of the goods. However, in hire purchase, the hire vendor can repossess the goods, when the hire purchaser defaults in payment. In case of sale of goods, the buyer cannot terminate the contract, and he/she is obligated to pay the price.

What is the difference between a purchase agreement and a sales contract?

A purchase and sale agreement is different from a purchase agreement in one particular way. Rather than complete the transaction, a purchase and sale agreement will facilitate it while providing clear guidance regarding party responsibility. By signing the contract, you do not agree to buy or sell the house.

What is the difference between Conditional Sale and hire purchase agreement?

Hire Purchase is an agreement that gives you the option to own the car at the end of the agreement. A Conditional Sale agreement is the same as Hire Purchase, except that you will automatically own the car once the finance has been repaid in full.

What is the difference between sale and mortgage?

Mortgage deed is executed when you are obtaining a loan against a immovable property. Whereas in a sale deed you are transferring your entire right, title, interest n ownership over the immovable property to the purchaser absolutely for a valid consideration.

What is the difference between hire sale and credit sale?

In a Credit sale, the ownership of the goods transfers to the buyer, whereas in a Hire Purchase agreement, the ownership of the goods remain with the seller until the full payment has been made by the Hirer.

What is contract to sale?

A contract of sale is an agreement between a seller and a buyer. The seller agrees to deliver or sell something to a buyer for a set price that the buyer has agreed to pay. With these contracts, the transfer of ownership happens when the buyer pays and the seller delivers.

What is a contract for sale and purchase?

A sales and purchase agreement (SPA) is a binding legal contract between two parties that obligates a transaction between a buyer and a seller. The agreement finalizes the terms and conditions of the sale, and it is the culmination of negotiations between the buyer and the seller.

What is a conditional sale contract?

Conditional sale is similar to hire purchase. The agreement usually includes the condition that the goods don’t belong to you until you’ve paid the final instalment and the lender may be able to repossess (take back) the goods if you fall behind with payments.

What is the difference between sale and bailment?

Bailment versus Sales. In a sale, the buyer acquires title and must pay for the goods. In a bailment, the bailee acquires possession and must return the identical object.

What is the difference between sale and mortgage by conditional sale?

Difference between ‘Mortgage by Conditional Sale’ and ‘Sale with a condition of Re-transfer’ “A mortgage by conditional sale must be evidenced by one document whereas a sale with a condition of retransfer may be evidenced by more than one document. A sale with a condition of retransfer, is not mortgage.

What is a purchase and sale agreement real estate?

A purchase and sale agreement, or PSA, is a document that is written up and signed after a buyer and seller mutually agree on the price and terms of a real estate transaction. Depending on state laws, either a real estate agent or a real estate attorney will prepare the PSA.

What is the difference between sale and agreement to sell?

Difference Between Sale And Agreement To Sell Risks are transferred immediately in sale whereas in the agreement of sale risks are attached to the seller till the goods are being transferred in the future. The sale is an executed contract whereas agreement to sell is an executory contract.

What is the difference between sale and hire purchase?

In a sale, the position of the buyer is that of the owner of the goods but in hire purchase, the position of the hirer is that of a bailee till he pays the last installment. 3. In the case of a sale, the buyer cannot terminate the contract and is bound to pay the price of the goods.

What is sales tax on hire purchase contract?

In a sale, sales tax is levied at the time of the contract. It must be in writing. It is governed by the Hire Purchase Act, 1972. The ownership of the goods is transferred from the seller to the hire only when all the agreed number of installments are paid.

What is a hire-purchase agreement?

Thus, the essence of hire- purchase agreement is that there is no agreement to buy, but there is only a bailment of the goods coupled with an option to purchase them which may or may not be exercised. It may be noted that mere payment of price by installments under an agreement does not necessarily make it a hire-purchase, but it may be a sale.

What is a contract of sale of goods?

Contracts of sale resemble contracts of hire purchase very closely, and indeed the real object of a contract of hire purchase is the sale of the goods ultimately.-Nonetheless, a sale has to be distinguished from a hire purchase as their legal incidents are quite different.