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Showing posts from August, 2016

6 Types of Contracts

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HIRE PURCHASE CONTRACT/CONTRACT OF SALE

*This contract takes place between the buyer and a seller when a credit transaction takes place
*The seller undertakes to deliver the goods.
*The owner remains the buyer of the goods until the full price has been paid (last installment)
*If then buyer misses one installment, the buyer gives one months notice that the installment is due
*If the buyer fails to pay, the seller repossesses the goods and keeps all the installments paid as well

CREDIT AGREEMENTS WITH RETAILERS/CREDIT AN OPEN ACCOUNT

Retailers enter credit agreements and lay-bye contracts with customers
Agreement is done when customers don’t have cash to buy goods
Customers open an account and decides to the option of paying in six months interest free or 12months with interest
The retailer allocates maximum credit limit (amount that the customer cannot exceed when purchasing goods using the card)
The customer undertakes to pay installments regularly at agreed payment dates usually la…