Conditional Sale Agreement

A Conditional Sale Agreement is a type of contract where a buyer agrees to purchase an item, such as a car or equipment, under specific conditions. The buyer takes possession of the item immediately but doesn't fully own it until all payments are made. If the buyer fails to meet the payment terms, the seller may reclaim the item. This arrangement is common in financing situations, allowing buyers to acquire goods they may not afford outright while ensuring the seller retains some security until the purchase is complete.