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WAEC Commerce 2016 Objective — Question 40

Question 40 of 50 from the West African Examinations Council (WAEC) Commerce 2016 Objective paper, with the correct answer and a full explanation.

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40. Goods become the property of the buyer on the transfer of liability and possession without immediate payment under the A. Hire purchase agreement B. credit sale agreement C. auction sales agreement D. conditional sales agreement

  • A. Hire purchase agreement
  • B. credit sale agreementCorrect
  • C. auction sales agreement
  • D. conditional sales agreement

Explanation

Under credit sale agreement, the bear takes possession of goods immediately even though he is yet to complete payment while under a hire-purchase agreement, the ownership of the goods remained with the seller until the final installment is paid.

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