HopefullyInLawSchool
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LSDefine
Simple English definitions for legal terms
conditional sale
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A quick definition of conditional sale:
A conditional sale is when someone buys something but doesn't own it until they meet a certain condition, like paying the full price. They can use the thing they bought, but the seller still owns it until the condition is met.
A more thorough explanation:
A conditional sale is a type of transaction where the buyer is given the right to use certain goods, but the ownership or title of the goods remains with the seller until a specific condition is met. This condition is usually the full payment of the purchase price by the buyer.
One example of a conditional sale is when a person buys a car on installment. The buyer is allowed to use the car, but the ownership of the car remains with the seller until the buyer has fully paid for the car. If the buyer fails to make the payments, the seller can repossess the car.
Another example is when a person buys a house on a mortgage. The buyer is allowed to live in the house, but the ownership of the house remains with the bank until the buyer has fully paid for the house. If the buyer fails to make the mortgage payments, the bank can foreclose on the house.
These examples illustrate how a conditional sale works. The buyer is given possession and use of the goods, but the ownership remains with the seller until the buyer has fulfilled the condition of full payment. This protects the seller's interest in the goods and ensures that the buyer fulfills their obligation to pay for the goods.