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 Tennessee Retail Installment Contract or Agreement is a legal document that outlines the terms and conditions of a purchase made by a consumer at a retail establishment. It is commonly used when customers do not have enough funds to make a full payment upfront and need to pay for the purchase in installments over an agreed period of time. The agreement typically includes details such as the identity of the buyer and seller, the description of the goods or services being purchased, the total purchase price, the amount and number of installments, the interest rate or finance charge, and the due dates for each payment. The terms and conditions of the agreement are legally binding for both parties, protecting the rights and obligations of both the buyer and the seller. In Tennessee, there are also variations of the Retail Installment Contract or Agreement depending on the type of purchase being made. Some common types include: 1. Motor Vehicle Retail Installment Sales Contract: This type of agreement is specifically used when purchasing a motor vehicle, such as a car, motorcycle, or recreational vehicle, on an installment basis. It may include additional clauses related to vehicle registration, insurance, or warranties. 2. Furniture or Appliance Retail Installment Sales Contract: This agreement is used when purchasing furniture, home appliances, or other household goods on an installment basis. It may include provisions related to delivery, installation, or return policies. 3. Electronics Retail Installment Sales Contract: This type of agreement is used for purchasing electronic devices, such as smartphones, laptops, or televisions on an installment basis. It may specify any warranties, service agreements, or return policies related to the electronics. It is important for consumers to carefully review and understand the terms and conditions of any Retail Installment Contract or Agreement before signing. They should pay attention to the interest rate, the total cost of the purchase including any finance charges, and the consequences of late or missed payments. Additionally, consumers should be aware of their rights under the Tennessee Retail Installment Sales Act, which provides certain protections and regulations for installment sales transactions.
