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When does the buyer in a hire purchase becomes the owner of the goods?

When does the buyer in a hire purchase becomes the owner of the goods?
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A When all installments have been fully paid
  • B After payment of the first installment
  • C Before the payment of the first installment
  • D When half of the purchased price has been paid
Correct Answer: Option A
Explanation:
Hire purchase is an arrangement for buying expensive consumer goods on credit, where the buyer makes an initial down payment, with the balance being paid in installments plus interest, ownership of the merchandise is not officially transferred to the buyer until all the payments have been made.
ownership is transferred when all installments have been paid

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