Common Contracts
1 similar null contracts
LAY-BY AGREEMENTS IN NEW ZEALANDJune 18th, 2020
There has been little written on lay-by transactions, probably because of the apparent simplicity of the lay-by contract. Lay-by is mentioned in only three legal texts1, has not been the subject of litigation in this country, and is not defined in any judicial dictionary. But this does not mean that no legal problems arise in lay-by trading. Uncertainties arise as to the risk in lay-by goods, and also as to the purchaser’s position in the case of the vendor’s bankruptcy. These uncertainties basically arise because it is not settled when property passes in a lay-by contract. Another problem is the great variety of terms found in lay-by contracts. Terms are often extremely harsh, especially those applicable in the case of default by the purchaser.
