Under a contract for the hire of chattels, what does the hirer obtain?

Under a contract for the hire of chattels, what does the hirer obtain?

• A. Ownership.
• B. Possession, but not ownership and use of a chattel in return for a payment of rent to the owner.
• C. Only use, not possession.
• D. Right to sell the chattel.

Answer: (B)

In a hire of chattels, the person hiring the item gets possession and the right to use the chattel for the agreed period, in return for rent. Ownership stays with the owner throughout the hire, so the hirer cannot sell or otherwise dispose of the chattel. This means the arrangement is about temporary possession and use rather than transfer of title. The other options misstate this: ownership remains with the owner; exclusive use with no possession isn’t correct; and the hirer does not gain the right to sell.

In a hire of chattels, the person hiring the item gets possession and the right to use the chattel for the agreed period, in return for rent. Ownership stays with the owner throughout the hire, so the hirer cannot sell or otherwise dispose of the chattel. This means the arrangement is about temporary possession and use rather than transfer of title. The other options misstate this: ownership remains with the owner; exclusive use with no possession isn’t correct; and the hirer does not gain the right to sell.