Conditional sales contracts allow the seller to repossess the property if the buyer is in arrears with payment. Many people who rent items such as electronics and furniture also participate in conditional sales contracts. The consumer can pay a bill to the retailer for the item – for example. B a television – and consent to a certain number of payments as part of the operation. Until the compensation is paid in full, the merchant has the option to withdraw it if the customer is in arrears with payments. A conditional sales contract is a contract for the sale of goods to a consumer. As a general rule, the agreement contains a condition that the goods do not belong to the buyer until the buyer has paid the last instalment. Ownership of the goods remains until then in the hands of the lender and he can repossess the goods if the buyer is in arrears in his payments. If a person decides to terminate a conditional sales contract before payments are made, there are two options regarding the goods: a conditional sales contract is the same as a lease purchase, except that you automatically own the car as soon as the financing has been fully refunded. Conditional sales contracts are often concluded in the context of the financing of machinery and plant as well as various forms of real estate.
A credit purchase agreement has a legal form similar to that of a conditional sales contract. However, under a credit sales agreement, the buyer of the goods immediately becomes the owner of the goods. This is often seen as a “buy now, pay later” situation, where the buyer takes possession of the goods and then pays the price in instalments. The buyer can take possession of the property as soon as the contract is in force, but he does not own the property until after having paid for it in full, which is usually done in instalments. If the company is in arrears in its payments, the seller will repossess the item. As part of a conditional sales contract, the property will be automatically returned to you once the financing is fully reimbursed. The conditions of the contract of sale subject to reservation may require the buyer to pay the full balance in case of delay. The seller has the right to recover the goods in case of delay of the buyer and to sell them to collect the debt. The conditional sales contract may also contain formulations that allow the seller to retain the right to pursue a default judgment if the proceeds of a sale to the seller do not satisfy the outstanding balance. .