INTRODUCTION. HIRE-PURCHASE LAW Hire Purchase Agreements under which Hire-purchase price does not exceed the sum of four million shillings (4‚000‚000/=) or such other higher or lower sum as the Minister may‚ after taking into account market forces from time to time prevailing‚ prescribe". - A person who wants to buy goods‚ but does not have sufficient monetary consideration as the price may enter into an agreement with the owner of goods‚ so that the owner may hire the goods to him with a view
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Capitalizing Operating Leases The principal advantages perceived by companies who enter into leases are: • They are able to use the assets in their business without showing the related debt. Companies improve the utilization of their assets via leasing since they can add capacity‚ as needed‚ a lot more easily by leasing rather than committing to own the assets. • They show no interest expense or depreciation in the income statement‚ although both of these are part of the “lease expense”
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ASSIGNMENT – BMLW5103 MAY SEMESTER 2013 BMLW 5103- BUSINESS LAW ASSIGNMENT OBJECTIVE: To evaluate the students understanding in the element which effect free consent in a contract‚ the issues of repossession under a hire purchase agreement and the formation and dissolution of a partnership. INSTRUCTIONS: Students have to discuss all the questions and justify their answer with correct provisions under respective statutes and relevant precedents. QUESTION 1: a) “In simple language
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Lease versus Purchase Jacquelin Her‚ Andrea Sisco‚ Karina Visloukh‚ Odis Atkinson‚ Tyler Menzel‚ and Lawanda FIN/370 March 9‚ 2015 Cindy Bayer Lease versus Purchase A company is in need of equipment‚ but do not have the capital to purchase. So‚ understanding when to lease verses purchase is a decision companies are constantly faced with. There are many factors that are involved when deciding whether to purchase or lease equipment. Leasing equipment may be more beneficial depending on the project
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1. What are the principles under the doctrine of binding precedent? When it comes to deciding on case‚ judges do not decide solely on their own. They are bound to follow certain accepted principles which are commonly known as “the doctrine of binding precedent”. The doctrine of binding precedent required that “like cases decided alike”. If a case now before the court has facts and raises issues similar to those of a previously decided case‚ then the present case will be decided in the same way
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1. Based on the Hire Purchase Act‚ 1967 stated that hire purchase is the hiring of goods with an option to purchase. Is it applicable to all types of goods? Explain it. Answer : A limited range of goods is covered by the Hire – Purchase Act 1967. They are listed in the First Schedule and may be varied by the Minister from time to time. The current list comprises the following : * All consumer goods * Motor vehicles‚ namely * Invalid carriages * Motor cycles * Motor cars including
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Is a Lease with Purchase Option A Good Choice for You? Are you having trouble meeting the bank’s strict guidelines for obtaining a mortgage? A lease with purchase option is a viable alternative for anyone looking to buy a home. Understanding what this purchase option really is and what it involves will help you make an informed decision. Since the housing bust of a few years ago‚ lenders have toughened up their lending guidelines‚ making it harder for many people to qualify for a mortgage. Their
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Operating Vs Finance Leases Organization does normally decide to lease long-term assets instead of buying them. The choice to lease is mostly because of evident factors such as necessity‚ better financial terms‚ maintain the assets off the balance sheet‚ or the absence of available funding. Operating lease and capital lease are the two types of accounting methods for leases. Warning‚ equally‚ the two kinds of leases are used for diverse reasons and marks in opposing usage in the books of accounting
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classifying a lease as operating or capital? Why is there a difference between the two? What are the implications of an operating lease versus a capital lease on an entity’s financial statements? The criteria and characteristics of operating lease is that operating lease usually a shorter-term lease under which the lessor is responsible for insurance‚ taxes‚ and upkeep. May be cancelable by the lessee on short notice. The criteria and characteristics of capital lease is that capital lease is typically
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Dealing with Operating Leases in Valuation Aswath Damodaran Stern School of Business 44 West Fourth Street New York‚ NY 10012 adamodar@stern.nyu.edu Abstract Most firm valuation models start with the after-tax operating income as a measure of the operating income on a firm and reduce it by the reinvestment rate to arrive at the free cash flow to the firm. Implicitly‚ we assume that the operating expenses do not include any financing expenses (such as interest expense on debt). While this assumption
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