A conditional sales contract does not necessarily have to include staggered payments. Conditional sales contracts are often concluded for the financing of machinery and equipment as well as for various forms of real estate. Conditional selling is a traditional way of buying a car on financing, offering a simple deal that involves paying a deposit followed by the same monthly payments, much like a personal loan. If you are not sure you still need something, check the original credit agreement which must indicate the total price of the merchandise and the amount you must pay when you terminate the contract. The credit agreement is the legal document you signed when you purchased the goods. If an individual decides to terminate a conditional sales contract before the payments are made, there are two options for the merchandise: you must pay all the payments due until the end of the contract. If your payments are less than half the total price of the merchandise, you may still have some money to pay, since the lender is entitled to that amount under the agreement. If you have already paid more than half the price when you terminate the contract, you cannot be reimbursed, but you usually no longer have to pay. As part of a conditional sales contract, the property will be automatically transferred to you as soon as the financing has been fully repaid. A conditional sales contract also protects the seller if the buyer is late if payment is required. Since the property will not be transferred to the buyer until after the terms have been concluded, the seller will remain the rightful owner for the duration of the contract. This makes it easier for the seller to repossess or recover the property as a matter of law, as he is not required to apply an expensive enforcement procedure against the buyer after an early transfer of ownership.
A conditional sales contract is a contract involving the sale of goods. The seller, also known as a conditional sales contract, allows the buyer to take back the items described in the contract and pay for them later. The legitimate ownership of the property belongs to the seller until the total price is paid by the buyer.