New Hampshire Conditional Sales Contract
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FAQ
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 sales contract is a financing agreement where a buyer will gain possession of an asset, but the title and right to repossess the asset still belong to the seller. This agreement is usually in place until the purchase is paid in full by the buyer.
It's harder to prove what exactly the contract terms were if they are not in writing. However, it's not necessary to have the contract in writing in order for it to be legally enforceable. Mutual assent can be expressed by spoken words, gestures, or may be inferred from the context of the situation.
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.
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.
