Commerce WAEC

Goods become the property of the buyer on the transfer of liability and possession without immediate payment under the?

A. hire purchase agreement
B. credit sales agreement
C. auction sales agreement
D. conditional sales agreement

Correct Answer: Option B

B. credit sales agreement

Explanation

Credit sales: means allowances of goods to customers in order to pay in advance. Abby. The name speaks for itself. It is goods given to a customer on credit, meaning that you sell the goods and collect cash at a later date per agreement with the customer. Under a credit sale agreement, you buy the goods at the cash price. You usually have to pay interest but some suppliers offer interest-free credit. Repayment is made by installments until you have paid the whole amount.

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