Identify Which of the Following Statements Correctly Describes a Hire-Purchase

Multiple Choice

Identify which of the following statements correctly describes a hire-purchase agreement.

A) The contract does not create a bailment and the hirer has no contractual obligation to pay the purchase price.
B) The contract gives the hirer a lien on the goods preventing the owner from selling the goods to another.
C) This is simply another name for a chattel mortgage on an automobile.
D) The contract creates a bailment,but the hirer has a contractual obligation to pay the purchase price.
E) The contract creates a bailment and the hirer has an option to purchase the item at the end of the stipulated term.