When does the buyer in a hire purchase becomes the owner of the goods?

Commerce

JAMB 2018

A. When all installments have been fully paid
B. After payment of the first installment
C. Before the payment of the first installment
D. When half of the purchased price has been paid

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Correct Answer: Option A

Explanation

Hire purchase is an arrangement for buying expensive consumer goods on credit, where the buyer makes an initial down payment, with the balance being paid in installments plus interest, ownership of the merchandise is not officially transferred to the buyer until all the payments have been made.

ownership is transferred when all installments have been paid

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