Page 192 - DMGT512_FINANCIAL_INSTITUTIONS_AND_SERVICES
P. 192

Unit 12: Hire Purchasing




          2.   When the goods are sold by description by a manufacturer or seller who deals in goods of  Notes
               that description, the seller is bound to deliver the goods of merchantable quality.
          3.   When the purpose for which the goods are purchased is implied from the conduct of the
               parties or from the nature or description of the goods, the condition of quality or fitness
               for that particular purpose is annexed by the usage of trade.

          4.   When the seller either fraudulently misrepresents or actively conceals the latent defects.
          Transfer of property in goods: The property in goods is said to be transferred from the seller to
          the buyer when the latter acquires the proprietary rights over the goods and the obligations
          linked thereto. The transfer of property in goods is the essence of a contract of sale.
          The moment when the property in goods passes from the seller to the buyer is significant from
          the point that risks associated with the goods follow the ownership, irrespective of the delivery.
          If the goods are damaged or destroyed, the loss is borne by the person who is the owner of the
          goods at the time of damage or destruction.  The two essential requirements for transfer of
          property in the goods are:
          1.   Goods must be ascertained and

          2.   The parties must intend to pass the property in the goods.
          Performance of a sale contract: Performance of a sale contract implies, as regards the seller to
          deliver the goods, and as regards the buyer to accept the delivery and make payment for them,
          in accordance with the terms of the contract. Unless there is a contract to the contrary, delivery
          of  the goods  and payment of the price are  concurrent conditions and are to be performed
          simultaneously.
          Delivery of goods: 'Delivery' means 'voluntary transfer of possession of goods from one person
          to another'. Delivery may be (a) actual (b) symbolic or (c) constructive.
          Delivery is said to be actual when the goods are handed over physically. A symbolic delivery
          takes place where the goods are bulky and incapable of actual delivery.


                 Example: A car is delivered by handing over the keys to the buyer.
          A constructive  delivery is a delivery by attornment  which takes  place when the person in
          possession of the goods acknowledges that he holds the goods on behalf and at the disposal of
          the other person.

          Acceptance of delivery: The buyer is said to have accepted the goods, when he signifies his assent
          that he has received the goods under, and in performance of the contract of sale. A buyer cannot
          reject the goods after he has accepted them. A buyer is deemed to have accepted the goods, when:
          1.   He intimates to the seller, his acceptance, or
          2.   He retains the goods, beyond a reasonable time, without intimating to the seller that he
               has rejected them, or
          3.   He does any act in relation to the goods which is consistent with the ownership of the
               seller.

          Hire Purchase Agreement

          A hire purchase agreement is in many ways similar to a lease agreement, in so far as the terms
          and conditions are concerned.






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