Louisiana Conditional Sales Contract
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FAQ
What Is a Conditional Sales Agreement? A conditional sales agreement is a financing arrangement where a buyer takes possession of an asset, but its title and right of repossession remain with the seller until the purchase price is paid in full.
The consent of parties legally capable of contracting is one of the requirements for a valid contract.
DISTINGUISHING A LEASE FROM A CONDITIONAL SALES AGREEMENT A conditional sales agreement (and not a lease) exists if any of the following are found: The agreement applies part of each payment toward an equity interest. The agreement provides for the transfer of title after payment of a stated amount.
A conditional contract is an agreement or contract conditional upon a specific event, the occurrence of which, at the date of the agreement, is uncertain. A common example is a contract conditional upon the buyer getting planning permission.
Also known as a sale on satisfaction or sale on trial, a sale on approval contract regulates the conditional sale of goods made on a trial basis. Sellers use this contract to induce sales that buyers may not be enthusiastic about, while buyers use it to examine and inspect goods they may not otherwise buy.
The Conditional Sale Agreement If you buy equipment on an installment plan, for example, it's yours only if you meet the condition of making all the payments. The buyer gets the equipment sooner than if they paid full price; the seller has security because they can repossess the equipment.
Broadly, a conditional contract is a contract that is subject to one or more conditions in the contract of sale. If a condition in the contract is not met, then either one or both of the buyer or seller will be able to terminate the contract.
A conditional contract is an agreement or contract conditional upon a specific event, the occurrence of which, at the date of the agreement, is uncertain. A common example is a contract conditional upon the buyer getting planning permission.
