Exam L4M3 Topic 4 Question 106 Discussion

Actual exam question for CIPS's L4M3 exam
Question #: 106
Topic #: 4
Under hire purchase agreement, when will the ownership of asset legally belong to the purchaser?

Suggested Answer: A Vote an answer

Hire purchase is an arrangement for buying expensive consumer goods, where the buyer makes an initial down payment and pays the balance plus interest in installments. Ownership is not transferred until the end of the agreement, hire purchase plans offer more protection to the vendor than other sales or leasing methods for unsecured items. That's because the items can be repossessed more easily should the buyer be unable to keep up with the repayments.
The answer is 'When the final instalment is paid'.
Reference:
- Hire Purchase Agreements
- CIPS study guide page 70
LO 1, AC 1.3

by Jerome at Apr 15, 2025, 04:41 AM

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