If you are in arrears with payments for a conditional sales contract, the creditor can recover the goods. In the context of a tempered purchase contract, the consumer is not obliged to take possession of the goods, while, in the case of a conditional purchase contract, the transfer of ownership of the goods takes place automatically after the conclusion of the condition. In most cases, the condition of the conditional sales contract is that the full amount is paid. If a person decides to terminate a conditional sales agreement before payments close, there are two options regarding the goods: the structure of a credit sales agreement is similar to the lease purchase (without call option fees) or conditional sale. Credit sales agreements may be regulated, exempted or unregulated under consumer credit regulation. It depends on the nature of the customer and the amount borrowed. This possibility is usually offered at the point of sale. The dealer supplies the vehicle to the customer, but it is financed by the creditor/lender (see Financial Structures module). Another way to protect a seller is the inclusion of a retention of title clause in the credit purchase agreement. This clause, also known as the “Romalpa” clause, allows a buyer to own the goods, but only acquire ownership from the seller when the final purchase price is paid. 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.

The credit agreement is the legal document that you signed when invoicing credit. In case of sale of credit, the ownership of the goods is not deferred. The buyer of the vehicle immediately becomes the owner. Under a conditional lease or sale agreement, the customer acquires ownership of the vehicle only when the conditions of the contract are met – reimbursement of all outstanding credits and costs due. As part of a credit sales agreement, you buy the goods at the cash price. You normally have to pay interest, but some providers offer interest-free credit. The refund is made in instalments until you have paid the full amount. 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. This purpose of this type of transaction is sometimes referred to as “supply credit” and, after the supply of the goods or services, the party that received the receipt owes a commercial debt to the other party.

This commercial debt is repayable in accordance with the terms of payment of the contract. . . .