The sale of goods is governed by Article 2 of the Uniform Commercial Code (UCC), a form of which has been adopted the state legislatures of every state.
Agreement for Sale of Goods with Installment Payments is a contractual agreement between a seller and a buyer, where the buyer pays for goods in multiple installments. This type of agreement is often used when the buyer lacks the funds necessary to pay for the goods in full. There are two main types of Agreement for Sale of Goods with Installment Payments: open-ended and closed-ended. Open-ended agreements require the buyer to make a down payment and then periodic payments until the total cost of the goods is paid in full. The seller can demand the full payment at any time, and the buyer can pay off the full balance without penalty. Closed-ended agreements require the buyer to make a down payment and then periodic payments until the total cost of the goods is paid in full. Unlike open-ended agreements, the buyer is prohibited from paying off the full balance before the end of the term and may be required to pay a penalty if they do so. Both types of Agreement for Sale of Goods with Installment Payments include terms and conditions which define the payment schedule, interest rates, and any other fees associated with the agreement. The agreement must also include the price of the goods and any other details of the sale, such as delivery arrangements.
