Definition

1. Noun:
   • A sale in which the buyer receives title to the property only upon the performance of some condition (usually the full payment of the purchase price): A "conditional sale" is a type of transaction where the legal ownership of an item is transferred to the buyer only after they meet a specific condition, most commonly after paying the full price.
   • A security interest taken by the seller in return for credit: In a financial context, a "conditional sale" can also refer to an arrangement where the seller retains a legal claim or security interest in the goods sold until the buyer completes payment, often used in credit-based sales.

Usage Examples

• Noun:
  • The car was purchased on a conditional sale, so the dealership still holds the title until the final installment is paid.
  • In a conditional sale, the buyer can use the equipment immediately but does not own it outright until the contract terms are fulfilled.

Advanced Usage

• "subject to a conditional sale agreement": Describes an item or property that is governed by the terms of a conditional sale.
  • The machinery is subject to a conditional sale agreement with the manufacturer.

Variants and Related Words

• Conditional Sale Agreement (n): The formal contract outlining the terms of a conditional sale.
  • They signed a conditional sale agreement for the new furniture.
• Vendor (or Seller): The party who sells the goods under a conditional sale.
• Purchaser (or Buyer): The party who buys the goods under a conditional sale.

Synonyms

• Installment plan: A system for paying for goods by making regular payments over time, often similar in structure.
• Security agreement: A contract that creates a security interest, closely related to the second definition.
• Deferred payment sale: A sale where full payment is postponed.

Related Phrases

• Sale on approval: A related but distinct concept where the buyer can return the goods if not satisfied, whereas in a conditional sale, the condition is typically payment.
• Title retention: A key feature of a conditional sale, where the seller retains legal title.

Notes

• A "conditional sale" is a specific legal and commercial term. It is crucial to understand that the buyer obtains possession of the goods but not legal ownership until the condition (e.g., full payment) is met. This differs from an absolute or cash sale.

Noun

1. a sale in which the buyer receives title to the property only upon the performance of some condition (usually the full payment of the purchase price)
2. a security interest taken by the seller in return for credit