Page 197 - DMGT512_FINANCIAL_INSTITUTIONS_AND_SERVICES

Financial Institutions and Services

Notes 14. ..................... mean every kind of movable property excluding money and auctionable
claims.
15. The ..................... means the money consideration for transfer of property in goods from
the seller to the buyer.

12.7 Review Questions

1. Analyse the Doctrine of Caveat Emptor.
2. What do you think to be the similarities between a hire purchase agreement and a lease
agreement?
3. What do you analyse as the main differences between hire purchase contract and sales?
4. Critically evaluate the legal framework of hire purchase agreements in India.
5. Despite all the odds, why do you think are hire purchase agreements increasing day by
day?
6. What according to you is the most important thing to be remembered while making a
hire-purchase agreement and why?
7. Examine the income, sales and interest tax aspects of Hire and purchase agreement.

8. "A hire purchase agreement is in many ways similar to a lease agreement." Justify the
statement with proper reasoning.
9. How do you think a hire-purchase agreement to be different than an agreement to sell?
10. What are the main challenges ahead of the Indian financial structure as regards the
hire-purchasing?
11. Analyse the difference between amount of earnest money and the price.

Answers: Self Assessment

1. 1974 2. Delivery
3. accepted 4. constructive
5. 1972 6. hire purchase
7. hirer/purchaser 8. ownership

9. terminate 10. Indian Contract Act, Sale of Goods Act
11. contract of sales 12. mortgage
13. regularly 14. 'Goods'
15. price

12.8 Further Readings

Online links www.deonixion.com
www.sebi.com
www.rbi.org

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