A conditional sales contract:
A)passes title to the goods sold to the buyer at the time the contract is signed.
B)normally calls for one lump sum payment on the contract payment date.
C)generally has a built-in interest cost.
D)is payable immediately upon receipt.
E)is a formal bid for a project.

Question

Quizplus · Accepted Answer

A conditional sales contract typically involves the seller retaining ownership of the goods until the buyer fulfills certain conditions, such as making all necessary payments. As such, there is often an interest cost included in the contract. Choices A, B, D, and E do not accurately describe a conditional sales contract.

A Conditional Sales Contract