[amp_mcq option1=”Debtor and creditor” option2=”Pawner and pawnee” option3=”Bailor and bailee” option4=”Lender and the borrower” correct=”option1″]<\/p>\n
The correct answer is: A. Debtor and creditor<\/strong><\/p>\n Under a hire purchase agreement, the buyer agrees to pay for the goods in installments over a period of time. The seller retains ownership of the goods until the final installment is paid. The buyer is therefore a debtor to the seller, and the seller is a creditor to the buyer.<\/p>\n A pawner is a person who gives a pawnbroker personal property as security for a loan. The pawnbroker is the pawnee. The pawner has the right to redeem the property by repaying the loan plus interest. If the pawner does not redeem the property, the pawnbroker may sell it to repay the loan.<\/p>\n A bailor is a person who gives property to another person, the bailee, for a specific purpose. The bailee is responsible for the safekeeping of the property and must return it to the bailor at the end of the bailment.<\/p>\n A lender is a person who gives money or property to another person, the borrower, on the condition that the borrower will repay the loan with interest. The borrower is responsible for repaying the loan on time and in full.<\/p>\n In a hire purchase agreement, the buyer is not a pawner, bailor, or lender. The buyer is a debtor to the seller.<\/p>\n","protected":false},"excerpt":{"rendered":" [amp_mcq option1=”Debtor and creditor” option2=”Pawner and pawnee” option3=”Bailor and bailee” option4=”Lender and the borrower” correct=”option1″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-56162","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"\n