conditional sale

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A conditional sale refers to a transaction in which the purchaser receives possession of and the right to use certain goods, but the title remains with the seller until the performance of a condition is met by the buyer. Under the contract, ownership does not pass to the buyer of the good(s) until after a certain period of time or until a specific condition is met. Usually, this condition is the buyer's full payment of the purchase price. An installment contract is typically a conditional sale.

[Last updated in January of 2022 by the Wex Definitions Team]