Problems Arising Sample Clauses

Problems Arising. The first problem arising in a lay-by transaction is that of passing of property. The intention of the parties will rarely appear on the face of the contract, and the provisions of the Sale of Goods Act tend to cloud the issue rather than clarify it. In the end, it appears that property does not pass under a lay-by contract until payment is completed.15 Associated with the property question is that of risk in lay-by goods. Who bears the risk in lay-by goods? Will such goods be covered by the vendor’s normal insurance, or, by that of the purchaser?16 A more frequent problem is that of the purchaser’s position where the lay-by xxxxxx goes bankrupt. The position here would generally seem to be that the purchaser ranks only as an unsecured creditor, and that he stands to lose a considerable amount of his money.17 Associated with this is the problem of the vendor defaulting, not through bankruptcy, but because of dishonesty. Lay-by offers con­ siderable scope for the “con man”, for the purported vendor is able to take possession of the purchaser’s money, and does not have to produce any goods until the transaction is completed. By this time he has had a good chance to abscond, leaving the purchaser with little remedy. The last major problem area concerns the harsh terms and con­ ditions often found in lay-by contracts. There is a special problem where the purchaser defaults, because, as has been shown, this often results in forfeiture of the deposit and all instalments paid by the 13. See p. 25. 14. See pp. 25, 28 and 29. 15. See pp. 19-20.