Paper 2 · June 2004 · Hire purchase, credit sale and discounts
Which of the following is true of hire purchase but not of credit sale?
AA written agreement is legally required
BNo deposit is required from the buyer
CThe buyer owns the goods immediately at the time of purchase
DIt is typically used for non-durable goods such as clothes
Explanation
Hire purchase is controlled by law and requires a written agreement; credit sale does not.
Derived from ZIMSEC Commerce 7103/2 Paper 2, June 2004, Q3