A retail installment agreement is an agreement signed by the Purchaser involving a finance charge and providing for the sale of goods or services. Federal and some State Laws (Consumer Credit Protection Acts) require the disclosure of what the Purchaser is being charged for the credit he/she is receiving. These disclosures include such things as the amount being financed; finance charges; the annual percentage rate; and the number of payments and when due. However, such disclosures are usually only required when a person regularly extends consumer credit (e.g. more than 25 times in the preceding calendar year).
This form is for a casual seller who does not enter into such transactions on a regular basis. It can also be used in commercial transactions (e.g., credit that is not being extended primarily for personal, family, or household purposes).
The Purchaser in this form grants the Seller a security interest in the collateral being sold. A security interest is an interest in personal property or fixtures that secures payment or performance of an obligation. The Seller requires the Purchaser to secure the obligation with the personal property being purchased so that if the Purchaser does not pay as promised, the Purchaser can take the collateral back, sell it, and apply the proceeds against the unpaid obligation of the Purchaser.
The Illinois Retail Installment Contract or Agreement is a legal document that outlines the terms and conditions of a purchase made on credit in the state of Illinois. This agreement is typically used for the purchase of goods or equipment, such as appliances, furniture, or vehicles, where the buyer agrees to pay for the item in installments over a certain period of time. The Illinois Retail Installment Contract is governed by the Retail Installment Sales Act, which sets forth the rules and regulations that must be followed by both the buyer and the seller. It is designed to protect consumers from unfair or deceptive practices and ensure transparency in the transaction. The agreement contains detailed information about the purchase, including the description and price of the item, the down payment amount, the interest rate, and the number of installment payments required. It also includes provisions for late fees, prepayment penalties, and the rights and responsibilities of both parties in the event of default or non-payment. There are several types of Illinois Retail Installment Contracts or Agreements, depending on the specific nature of the purchase. These include: 1. Vehicle Purchase Agreement: This type of agreement is used for the financing of a vehicle, such as a car, truck, or motorcycle. 2. Furniture or Appliance Purchase Agreement: This agreement is used for the financing of furniture, appliances, electronics, or other household goods. 3. Home Improvement Contract: This type of agreement is used for financing home improvement projects, such as renovations or repairs. 4. Jewelry or Luxury Goods Purchase Agreement: This agreement is used for financing the purchase of high-end jewelry, watches, or luxury items. Each type of agreement may have specific clauses and provisions tailored to the particular purchase, but the overall structure and purpose remain the same — to set forth the terms of the credit purchase and protect the rights of both the buyer and the seller.
