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Hire-Purchase and Conditional Sale – Sales of Goods
Conditional Sale is an agreement for the sale of goods like in which the purchase price or part about it is payable through instalments and the property in such type of the goods is to remain in the seller like notwithstanding that the buyer is in possession that like conditions such to the payment of instalments or until otherwise such may be specified in the agreement are fulfilled there.The distinguishing feature however is that this is really a contract of sale where payment is by instalments while the hire purchase agreement is a contract of hiring with an option to purchase. However A conditional sale is such a sale right from the start but maturing on the fulfilment of certain conditions set out in the agreement while a hire purchase is a contract of hiring which becomes a sale only upon the exercise of the option to purchase. Conversely the parties in a conditional sale are seller and buyer as opposed to owner and hirer under the hire purchase agreement.
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