Dfference between 'Sale' and 'Hire-purchase'

The primary difference between a Sale and a Hire-Purchase agreement lies in when the ownership (property) of the goods is transferred. In a sale, the buyer becomes the owner immediately or upon a specified date, whereas in hire-purchase, the hirer only becomes the owner after paying the final installment.

Major Distinctions

Basis of Distinction	Sale	Hire-Purchase
Governing Law	Sale of Goods Act, 1930.	Hire-Purchase Act, 1972.
Transfer of Ownership	Ownership passes to the buyer immediately or as per the contract.	Ownership passes only after the last installment is paid.
Position of the Party	The buyer is the owner of the goods.	The hirer is merely a bailee until the final payment.
Right of Termination	The buyer cannot terminate the contract by returning the goods.	The hirer can terminate the agreement at any time by returning the goods.
Risk of Loss	Risk lies with the buyer, as they are the owner.	Risk lies with the owner (seller) until the option to buy is exercised.
Insolvency of Buyer	The seller takes the risk of the buyer's insolvency.	The owner can repossess the goods if installments are not paid.
Resale	The buyer can resell the goods to a third party.	The hirer cannot resell the goods because they do not own them yet.