Legal Definitions - sale on credit

Definition: A sale where the buyer receives possession of the goods immediately but pays for them at a later date.

Example: John buys a laptop from a store for $1000 on credit. He takes the laptop home with him but will pay for it in installments over the next six months.

Explanation: In this example, John receives the laptop immediately but does not pay for it upfront. Instead, he will pay for it in installments over a period of six months. This is an example of a sale on credit.