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.
A Michigan Retail Installment Contract or Agreement refers to a legal document that establishes the terms and conditions for the purchase of goods or services by a customer in the state of Michigan. This agreement is commonly used in retail transactions, wherein the customer agrees to make payments for the purchased item(s) over a defined period of time, usually in installments. The retail installment contract in Michigan acts as a binding agreement between the buyer (customer) and the seller (retailer). It lays out the essential details of the transaction, including the identification of both parties, a detailed description of the goods or services being purchased, the total purchase price, the amount of any down payment made by the buyer, the interest rate (if applicable), the length of the repayment period, and the terms for making timely installment payments. The agreement also includes other important information, such as the consequences of late payments or defaulting on the contract, any additional fees or charges associated with the purchase, the rights and obligations of both parties, and other relevant provisions. It is important for both the buyer and the retailer to carefully review and understand all the terms and conditions outlined in the agreement before signing it. In Michigan, there are several types of retail installment contracts or agreements that may be used based on the nature of the retail transaction. Some common types include: 1. Installment Sales Contract: This type of agreement is used when a customer purchases goods or services from a retailer and agrees to make payments in installments over a specified period. 2. Motor Vehicle Retail Installment Sales Contract: Specifically used for vehicle purchases, this agreement includes additional provisions related to vehicle financing, such as the vehicle identification number (VIN), the make and model of the vehicle, and any applicable warranties. 3. Furniture or Appliance Retail Installment Sales Agreement: This type of contract is tailored for the purchase of furniture or appliances, specifying details like the model, brand, and number of items being purchased. Regardless of the type, a Michigan Retail Installment Contract or Agreement provides legal protection and ensures that the rights and responsibilities of both the buyer and the retailer are clearly defined throughout the duration of the retail transaction.
