Contract of sale resembles with contracts of hire purchase very closely, and indeed the real object of a contract of hire purchase is the sale of the goods ultimately.\nHire Purchase Agreements are governed by the Hire-purchase Act, 1972. \nThe term “hire-purchase agreement” means an agreement under which goods are let on hire and under which the hirer has an option to purchase them in accordance with the terms of the agreement and includes an agreement under which—\n(a) Possession of goods is delivered by the owner thereof to a person on condition that such person pays the agreed amount in periodical instalments, and\n(b) The property in the goods is to pass to such person on the payment of the last of such instalments, and\n(c) Such person has a right to terminate the agreement at any time before the property so passes.\nThe main points of distinction between the 'Sale' and 'Hire-Purchase' are as follows:\nBasis of difference\tSale\tHire-Purchase\nTime of passing property\tProperty in the goods is transferred to the buyer immediately at the time of the contract\tProperty in goods passes to the hirer upon payment of the last installment.\nPosition of the property\tThe position of the buyer is that of the owner of the goods\tThe position of the hirer is that of a bailee till he pays the last installment.\nTermination of contract\tThe buyer cannot terminate the contract and is bound to pay the price of the goods\tThe hirer may, if he so likes, terminate the contract by returning the goods to its owner without any liability to pay the remaining installments.\nBurden of Risk of Insolvency of the buyer\tThe seller takes the risk of any loss resulting from the insolvency of the buyer\tThe owner takes no such risk, for if the hirer fails to pay an installment, the owner has right to take back the goods.\nTransfer of title\tThe buyer can pass a good title to a bona fide purchaser from him\tThe hirer cannot pass any title even to a bona fide purchaser.\nResale\tThe buyer in sale can resell the goods\tThe hire purchaser cannot resell unless he has paid all the installments.