All the organizations that are dealing in the sales of items in any way often go through the sale agreements. There are multiple types of the sale agreements, according to the type of organization or the type of items being processed. For instance producers, retailer, store owners and banks etc. All go through the sale agreements time to time that are different in their nature. The conditional sale agreement is one of them.
What is a Conditional Sale Agreement?
Like any other agreement, conditional sale agreement is also a legal document that involves the seller and the buyer, but it includes some condition in the sale process. In this type of agreement, the buyer can take the possession of the sold item, but have not the title of ownership until the full payment is made to the seller. This agreement is often held between the seller and retailer for the sale of different items or in bank financing for your car purchase. The sale and purchase are bound under the condition specified in the agreement. The conditional sale agreement allows the buyer to pay the price in installments extended over weeks or months.
It can be done for the sale of property, vehicles and any other products that can be dealt under some conditions. Like any other agreement, it also requires to be valid according to the state law. The conditional sale agreement must be in written form and include all the necessary details.
It should include the following.
- On the top title of the agreement
- Names and addresses of the parties along with the date
- Clearly mention the conditions which must be fulfilled
- Type of item being processed along with all required details
- The total price of the product, any interest and amount of installment must be clearly mentioned in the agreement.
- Agreement must be signed by the entities and witnesses
Create your own Conditional Sale Agreement Example by using the following template,