Karan agreed to sell his laptop to Vishal for a price to be fixed by Kiran a hardware engineer. However, before the delivery of the laptop, Karan…

The main points of distinction between the 'Sale' and 'Hire - Purchase' are as follows: Sr. No. Basis of difference Sale Hire-Purchase 1 Time of passing property Property in the goods is transferred to the buyer immediately at the time of the contract Property in goods passes to the hirer upon payment of the last installment. 2 Position of the property The position of the buyer is that of the owner of the goods The position of the hirer is that of a bailee till he pays the last installment. 3 Termination of contract The buyer cannot terminate the contract and is bound to pay the price of the goods The hirer may, if he so likes, terminate the contract by returning the goods to its owner without any liability to pay the remaining installments. 4 Burden of Risk of Insolvency of the buyer The seller takes the risk of any loss resulting from the insolvency of the buyer The owner takes no such risk, for if the hirer fails to pay an installment, the owner has right to take back the goods. 5 Transfer of title The buyer can pass a good title to a bona fide purchaser from him The hirer cannot pass any title even to a bona fide purchaser. 6 Resale The buyer in sale can resell the goods The hire purchaser cannot resell unless he has paid all the installments.