Conditional Sale Agreement - Standard Form Format

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This Conditional Sale Agreement (Standard Form Format) is between a seller and buyer who agrees to purchase equipment over time. This agreement sets forth the specific terms of the arrangement including how the equipment will be delivered and installed and who holds title to the equipment.

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This Conditional Sale Agreement (Standard Form Format) is between a seller and a buyer (franchisee) for the purchase of equipment over time. This agreement sets forth the name, address and phone number of both parties, the location of the equipment and a detailed description of the equipment. It also sets forth the payment terms, including the amount of monthly payments and the term. It is imperative that this agreement be set forth in writing. A written Conditional Sale Agreement (Standard Form) will be helpful in the event there are disagreements or misunderstandings as to the specific terms of the equipment sale.

This Conditional Sale Agreement (Standard Form) contains the following important provisions:
  • Equipment/Delivery and Installation: Sets out the specific equipment being purchased and how the equipment will be delivered and installed;
  • Term and Payments: Sets forth that the agreement will commence on the day the equipment is delivered and that buyer is obligated to make all payments under this agreement;
  • Disclaimer of Warranties and Claims: Buyer acknowledges that seller is not the supplier nor manufacturer of the equipment and makes no representations or warranties, either express or implied, and buyer is purchasing the equipment “as is”;
  • Title: Personal Property: Title in the equipment will be reserved by seller until the equipment has been paid for in full by the buyer;
  • Insurance: Buyer shall insure the equipment from loss or damage during the term of the agreement for the full replacement value;
  • Signatures: Both seller and buyer must sign this agreement.

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This attorney-prepared packet contains:
  1. General Instructions
  2. Conditional Sale Agreement (Standard Form Format)
State Law Compliance: This form complies with the laws of all states
Number of Pages7
DimensionsDesigned for Letter Size (8.5" x 11")
EditableYes (.doc, .wpd and .rtf)
UsageUnlimited number of prints
Product number#28828
This is the content of the form and is provided for your convenience. It is not necessarily what the actual form looks like and does not include the information, instructions and other materials that come with the form you would purchase. An actual sample can also be viewed by clicking on the "Sample Form" near the top left of this page.
 
 
Conditional Sale Agreement
(Standard Form Format)

 

 

 

Seller
Buyer
 
[Seller Name]
[Seller Address]
 
Tel:    [Seller Telephone No.]
Fax:    [Seller Fax No.]
 
[Franchisee Name]
[Franchisee Address]
 
Tel:    [Franchisee Telephone No.]
Fax:    [Franchisee Fax No.]
Equipment
Location of Equipment (if different than Buyers Address above):
 
[Address of Location of Equipment]
 
Equipment Description:
 
See Schedule "A"
 
Payment Terms
Term:
 
[Term (ie. 36 Months)]
Monthly Payment:
 
$ [Monthly Payment]
Signing
Name of Seller Authorized Signing Officer
 
[Name of Officer Signing of Seller]
 
Name of Subcontractor Authorized Signing Officer
 
[Name of Signing Officer of Buyer]
 
By signing below, Buyer acknowledges that the terms and conditions below shall form an integral part of this Agreement and that Buyer has read all of such terms and conditions and agrees with the same. This Agreement is not binding upon Seller until it his been signed below by a duly authorized officer of Seller.
Signature of Seller Authorized Signing Officer
 
  x  _________________________________________
 
Date: _____________________________, 20_______
Signature of Buyer Authorized Signing Officer
 
  x  _________________________________________
 
Date: _____________________________, 20_______
For Seller Internal Use Only
Date of Delivery/Installation of Equipment:
 
 
Comments:
 
 
 
Terms and Conditions
 
 
 
 
 
 
1.    Purchase Of Equipment. Seller hereby sells to Buyer and Buyer hereby buys from Seller, the Equipment described above. The Equipment, together with all replacement parts, repairs, additions, substitutions and accessories is hereafter collectively referred to as the  “Equipment”.
2.    Delivery/Installation of the Equipment. Buyer's confirmation to Seller, by means of delivery of a Equipment Delivery/Installation Certificate in form and substance satisfactory to Seller, of the delivery and installation of the Equipment to and by Buyer shall constitute Buyer's acknowledgment of its receipt of the Equipment in good working condition, and that all installation and other work necessary prior to use thereof has been completed. Buyer understands that Seller will be relying upon such confirmation by Buyer as a condition of making payment to the supplier for the Equipment.
3.    Term and Payments. The term of this Agreement shall commence on the day of the month in which the Equipment is delivered to Buyer or Buyer's agent. The monthly payments hereunder shall commence and be due on the first day of the month following the date on which the Equipment has been delivered to Buyer or its agent, and payments shall be paid on the first day of each successive month thereafter for the full Term. The Buyer also agrees to make said payments by pre-authorized bank debit only and further agrees to execute the necessary documents required to do so, in form and substance satisfactory to Seller. Buyer's obligation to make payments and all other obligations hereunder shall be absolute and unconditional and are not subject to any abatement, set-off, defense or counterclaim for any reason whatsoever. Whenever any payment is not made by Buyer when due, Buyer agrees to pay Seller interest on all monies due to Seller, including overdue interest from and after the date of default at the annual rate of twelve percent (12%) calculated and payable monthly until paid in full but in no event more than the maximum rate permitted by law.
4.    Disclaimer of Warranties and Claims. The Buyer acknowledges that Seller is neither the supplier nor the manufacturer of the Equipment. Buyer acknowledges that Seller makes no representations or warranties to anyone, express, implied or statutory (including warranties of merchantability, condition, design, operation, marketability, quality or fitness for any use or purpose) as to any aspect of the Equipment, or as to whether the Equipment is subject to any liens, claims, hypothecs or other encumbrances. Buyer buys the Equipment "as-is". Seller shall not be liable for any injury to Buyer or to any third person or property, including direct, indirect, consequential, incidental and special damages caused by the use, ownership, manufacture, installation, or operation of the Equipment, or any delay or failure by the manufacturer or supplier to repair or maintain the equipment or provide parts, or supplies for the Equipment, and the Buyer acknowledges that no such delay or failure shall in any way affect the Buyers obligations under this Agreement. If the Equipment does not operate as represented by the manufacturer or supplier, or is unsatisfactory for any reason whatsoever the Buyer shall make any such claim solely against the manufacturer or supplier and Buyer hereby waives any such claim against Seller and agrees to continue to make all payments to Seller stipulated by this Agreement notwithstanding any such claims. No representation or warranty by the manufacturer or supplier is binding on Seller nor shall breach of such warranty relieve Buyer of its obligations to Seller. Seller hereby assigns to the Buyer, to the extent assignable and without recourse to Seller, all warranties from the Manufacturer to Seller provided that if the Equipment is returned to or repossessed by Seller, all such warranties shall be deemed to have been reassigned to Seller.
5.    Title: Personal Property. Title to the Equipment is reserved by Seller until Seller has been paid in full for the Equipment. Buyer hereby authorizes Seller, at Buyer's expense, to cause this Agreement, or any statement or other instrument in respect of this Agreement showing the interest of Seller in the Collateral, including without limitation Personal Property Security Act financing statements, to be filed or recorded and grants Seller the right to sign Buyer's name thereto. Buyer agrees to execute and deliver any statement or instrument requested by Seller for such purpose, and agrees to pay or reimburse Seller for any searches, filings, recordings, stamp fees or taxes related to the filing or recording of any such instrument or statement. Buyer shall at its expense keep the Collateral free from any legal process, lien, charge, or encumbrance and shall give Seller immediate written notice of any claim as to the foregoing and shall indemnify Seller from any loss caused thereby. Buyer shall, upon Seller's request, execute or obtain from third parties and deliver to Seller such estoppel certificates, landlord's waivers and such further instruments and assurances as Seller deems necessary or advisable for the confirmation of compliance with the terms of this Agreement or perfection of Seller's rights hereunder. The Equipment is, and shall at all times be and remain, personal property notwithstanding that the Equipment or any part thereof may now be or hereafter become, in any manner, affixed or attached to real property or any improvements thereon.
6.    Maintenance, Use and Location. Buyer shall, at its own cost and expense, maintain the Equipment in good operating condition and repair other than normal wear and tear; shall use the Equipment in the regular course of its business and at the location stated herein, within its normal operating capacity and shall comply with all laws, ordinances, regulations, requirements (from the manufacturer or otherwise) and rules with respect to the maintenance and operation of the Equipment; shall not move the Equipment or make any modifications, alterations or additions to the Equipment without prior written consent of Seller; shall not so affix the Equipment to realty as to change its nature to real property or a fixture.
7.    Risk of Loss. Buyer shall bear all risks of loss or damage to Equipment from any cause from date of delivery to Buyer. Buyer shall immediately notify Seller of any damage to or destruction of the Equipment. In the event of loss or damage, Buyer, at Seller's sole option, shall (a) repair the damaged Equipment; or (b) replace lost or unrepairable damaged Equipment with substantially identical Equipment in good condition and working order with documentation creating clear title thereto in Buyer; or (c) pay to Seller the present value of all remaining payments provided for over the balance of the term of this Agreement discounted at six (6%) per annum.
8.    Insurance. Buyer shall keep the Equipment insured against all risks of loss or damage from every cause whatsoever during the term of this Agreement for not less than the full replacement value thereof, and shall carry public liability and property damage insurance covering the Equipment and its use in amounts customary for similar Equipments and name Seller and its assignee as loss payee, as their interests may appear with respect to property damage coverage as additional insureds with respect to property damage coverage and as additional insureds with respect to public liability coverage. Buyer shall pay the premiums therefore and deliver said policies or certificates of coverage therefor to Seller; the insurance shall provide Seller a right to thirty (30) days written notice before the policy can be altered or canceled and the right, without obligation, to pay the premiums. Should Buyer fail to provide such insurance coverage, Seller may obtain such coverage and charge Buyer therefor.
9.    Taxes and Charges. This Agreement is intended to be a net agreement, and all payments net to Seller to the extent permitted by applicable law. Buyer shall pay directly (or, at Seller's option, reimburse Seller for) all license fees, assessments and other government charges, and all sales, use, excise, franchise, and any other similar taxes (collectively, "Charges") now or hereafter imposed, levied or assessed by any federal, provincial or local government or agency upon any of the Equipment or upon the purchase, ownership, use, possession, financing or operation thereof, or upon the receipt of payments therefor (excluding income taxes) before the same shall become in default or subject to the payment of any penalty of interest. Seller, at its sole option, may assess estimated personal property tax with each payment. Buyer shall supply Seller with receipts or other evidence of payment of all Charges as may reasonably be requested by Seller.
10.    Agreement Irrevocability and Other Representations of Buyer. BUYER'S OBLIGATIONS UNDER THIS AGREEMENT ARE ABSOLUTE, NON CANCELLABLE AND SHALL CONTINUE WITHOUT ABATEMENT AND REGARDLESS OF ANY DISABILITY OF BUYER TO USE THE EQUIPMENT OR ANY PART THEREOF FOR ANY REASON INCLUDING, BUT NOT LIMITED TO WAR, ACT OF GOD, GOVERNMENTAL REGULATIONS, STRIKE, LOSS, DAMAGE, DESTRUCTION, OBSOLESCENCE, FAILURE OF OR DELAY IN DELIVERY, REPAIR OR MAINTENANCE, UNAVAILABILITY OF PARTS OR SUPPLIES, FAILURE OF THE EQUIPMENT TO OPERATE PROPERLY, TERMINATION BY OPERATION OF LAW, OR ANY OTHER CAUSE.
11.    Indemnity. Buyer shall indemnify and hold Seller harmless from and against any and all claims, actions, suits, proceedings, costs, expenses, damages, and liabilities, including legal fees (on a solicitor and own client basis) arising out of, connected with, or resulting from the Equipment or this Agreement. Such indemnity shall survive the termination or expiration of the Agreement.
12.    Default and Remedies. If any one of the following events shall occur (a) Buyer fails to pay any payment hereunder when due; or (b) Buyer fails to pay within five (5) days when due, any sums due to Seller arising independently of this Agreement; or (c) Buyer fails to perform any covenants herein or in any other agreement with Seller after 10 days written notice; or (d) Buyer becomes insolvent, bankrupt or makes an assignment for the benefit of creditors; or (e) the Buyer assigns any of its rights under this Agreement, except in accordance with paragraph 13 hereof; or (f) the Franchise Agreement between Buyer and Seller is terminated for any reason whatsoever, Seller may, to the extent permitted by applicable law, exercise any one or more of the following remedies:
(i) Declare the entire unpaid balance of payments for the unexpired term of the Agreement immediately due and payable and recover the present value of all remaining payments for the balance of the term of this Agreement discounted to the date of default at six percent (6%) per annum;
(ii) Charge Buyer interest on all monies due Seller from and after the date the same is due at the rate of twelve percent (12%) per annum, calculated monthly, until paid but in no event more than the maximum rate permitted by law;
(iii) Require Buyer to return the Equipment at Buyer's expense, to a place designated by Seller and to recover possession of all items of Equipment, without demand or notice, wherever same may be located, without any court order or pre-taking hearing. Buyer hereby waives any and all damages occasioned by such retaking. Seller may, at its option, use, ship, store, repair or recondition all Equipment so recovered and sell, lease or otherwise dispose of any such Equipment at a private or public sale, or resell the Equipment at Buyer's premises at reasonable business hours without being required to remove the Equipment.
Buyer shall also be liable for and shall pay to Seller all expenses incurred by Seller in connection with the enforcement of any of Seller's remedies including all expenses of repossessing, storing, shipping, repairing, and selling the Equipment, and Seller's reasonable legal fees and disbursements on a solicitor and own client basis.
All remedies of Seller hereunder are cumulative, are in addition to any other remedies provided for by law, and may, to the extent permitted by law, be exercised concurrently or separately. The exercise of any one remedy shall not be deemed to be an election of such remedy or to preclude the exercise of any other remedy. No failure on the part of Seller to exercise and no delay in exercising any right or remedy shall operate as a waiver thereof or modify the terms of this Agreement. A waiver of default shall not be a waiver of any other or subsequent default.
13.    Assignment; Waiver of Defenses; Quiet Enjoyment. Seller may, without notice or consent, assign or transfer this Agreement or grant a security interest in the Equipment, or any other sums due or to become due hereunder, and in such event Seller's assignee shall have all the rights, powers and remedies of Seller hereunder. Buyer agrees that no assignee of Seller shall be bound to perform any duty, covenant, condition or warranty attributable to Seller and Buyer further agrees not to raise any claim or defense arising out of this Agreement or otherwise which it may have against Seller as a defense, counterclaim, or offset to any action by an assignee or secured party hereunder. Upon Seller's request, Buyer will acknowledge to any assignee receipt of Seller's notice of assignment. Nothing contained herein is intended to relieve Seller of any of its obligations. BUYER SHALL NOT ASSIGN THIS AGREEMENT OR ANY INTERESTS HEREUNDER NOR ENTER INTO ANY TRANSACTION OF SALE OR LEASE WITH RESPECT TO THE EQUIPMENT WITHOUT SELLER'S PRIOR WRITTEN CONSENT, WHICH MAY BE GRANTED OR WITHHELD IN SELLER'S SOLE DISCRETION.
14.    Consent to Jurisdiction, Governing Law and Waiver. Buyer consents to the personal jurisdiction of the courts of the State of [State (ie. California)] with respect to any action arising out of this Agreement or the Equipment. Service of process by registered mail or by facsimile shall be deemed the equivalent of personal service in any such action. This Agreement shall be governed by and construed according to the laws of the State of [State (ie. California)]. To the extent permitted by law, Buyer hereby waives any and all rights and remedies granted it by the provisions of any law, statute or regulation which would, in any manner, affect Sellers rights and remedies hereunder.
15.    General. This Agreement shall inure to the benefit of and is binding upon the heirs, personal representatives, successors and permitted assigns of the parties hereto. Time is of the essence of this Agreement. This Agreement contains the entire arrangement between Seller and Buyer, and no modification of this Agreement shall be effective unless in writing and executed by Seller. All covenants and obligations of Buyer to be performed pursuant to this Agreement, including all payments to be made by Buyer hereunder, shall survive the expiration or earlier termination of this Agreement. If more than one Buyer is named in this Agreement, the liability of each shall be joint and several. In the event any provision of this Agreement shall be unenforceable, then such provision shall be deemed deleted, however all other provisions hereof shall remain in full force and effect. All notices under this Agreement shall be deemed given when delivered personally or when sent by certified mail to the party intended at its address set forth herein, or such other addresses said party may provide in writing from time to time.
 
 
 
 
Schedule “A
 
 
Description of Equipment
Quantity
Description
Unit Price
Total Price
 
[Describe Hardware, including full particulars of Manufacturer, Model No., etc.]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

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