Accounting · Hire Purchase vs Instalment System
Which of the following statements regarding the legal and structural distinctions between Hire Purchase and Instalment Purchase systems are correct? 1. Agreements under the Hire Purchase system are governed by the Hire Purchase Act of 1972, while the Instalment Purchase system falls under the Sale of Goods Act of 1930. 2. Under the instalment payment system, the seller does not possess the right to repossess the goods; instead, the seller's primary remedy for default is legal action. 3. In an instalment purchase, the buyer has the legal right to resell or mortgage the goods even before the final instalment has been paid. 4. Both the Hire Purchase system and the Instalment Purchase system are legally categorized as 'Hire leading to sale' contracts. Choose the most appropriate answer from the options given below:
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