If a person decides to terminate a conditional sales contract before payments are made, there are two possibilities when it comes to the goods: many people who rent their own items, such as electronics and furniture, also participate in conditional sales contracts. The consumer can pay a bill to the retailer for the item - for example. B a television - and consent to a certain number of payments as part of the operation. Until the compensation is paid in full, the merchant has the option to withdraw it if the customer is in arrears with payments. Once the contract is fully paid, you will receive a "memorandum of satisfaction" from the lender. This document shows that the debt has been paid in full. The memorandum must be recorded in the Personnel Security Register in order to remove the notice of guilt. Conditional sales contracts allow the seller to repossess the property if the buyer is in arrears with payment. In accordance with the provisions of Article 30(3) and Article 30(4), where a third party acquires guarantees in the form of consumer goods with a value of less than $1,000 and the third party is not aware of the guarantee agreement concluded between the seller and the creditor, the third party releases the object from the interests of the creditor, even if it is registered. This is called the "garage sale" defense. The buyer is more often known as a bona foi buyer for value without notice. 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. Ownership of the goods remains until then in the hands of the lender and he can repossess the goods if the buyer is in arrears in his payments. A conditional sales contract does not necessarily involve instalment payments. A conditional sales contract also protects the seller when the buyer is in arrears in the necessary payments. Since the goods are transferred to the buyer only at the end of the conditions, the seller remains the rightful owner for the duration of the contract. This allows the seller to legally take back or recover the property, as they do not have to initiate costly seizure proceedings against the buyer after the early transfer of a title. As for the IRS, the owner of property is the person or corporation that has both the benefits and expenses of the property, not the person with legal title. This is the case for most conditional sales contracts. As noted above, conditional sales contracts are typically used by businesses to finance the purchase of machinery, office equipment and furniture. The Personal Property Security Act, RSBC 1996, c 359 [PPSA] governs conditional sales contracts and security contracts.
A new single system has been put in place for the registration, priority and enforcement of transactions in which guarantees are provided to guarantee the payment or performance of an obligation. The primary purpose of the PPSA is to provide lenders or creditors with a system of priority over other creditors when it is necessary for the lender or seller to take an interest in personal property to ensure that the obligations of the borrower or buyer are met. . . .