Conditional Sales Contract for New Zealand

Conditional Sales Contract Template for New Zealand

A comprehensive legal agreement governed by New Zealand law that establishes the terms and conditions for a sale where the transfer of ownership is contingent upon fulfillment of specific conditions, typically full payment of the purchase price. The document incorporates provisions compliant with New Zealand's Contract and Commercial Law Act 2017, Personal Property Securities Act 1999, and relevant consumer protection legislation. It details payment terms, title retention, risk transfer, delivery conditions, warranties, and enforcement rights, providing security for the seller while protecting the buyer's interests under New Zealand jurisdiction.

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What is a Conditional Sales Contract?

The Conditional Sales Contract is a vital commercial document used in New Zealand when selling goods where the transfer of ownership is dependent on specific conditions, most commonly the full payment of the purchase price. This document type is particularly relevant for high-value sales, equipment financing, and instances where the seller wishes to maintain security over the goods until payment is complete. The contract must comply with New Zealand's legal framework, including the Contract and Commercial Law Act 2017, Personal Property Securities Act 1999, and relevant consumer protection legislation. It is designed to protect the seller's interests through title retention while ensuring the buyer's rights are preserved, incorporating essential elements such as payment terms, delivery conditions, warranties, and enforcement mechanisms.

What sections should be included in a Conditional Sales Contract?

1. Parties: Identification and details of the seller and purchaser, including legal names, addresses, and company registration numbers if applicable

2. Background: Context of the sale, brief description of the goods, and acknowledgment of the conditional nature of the sale

3. Definitions: Key terms used throughout the agreement, including 'Goods', 'Purchase Price', 'Completion Date', and 'Security Interest'

4. Sale and Purchase: Details of the goods being sold, purchase price, and condition precedents for the sale

5. Payment Terms: Payment schedule, deposit requirements, installment amounts, and due dates

6. Title and Risk: Provisions regarding retention of title until full payment, transfer of risk, and PPSA requirements

7. Delivery and Acceptance: Terms for delivery of goods, inspection rights, and acceptance procedures

8. Warranties and Representations: Seller's warranties regarding the goods and buyer's acknowledgments

9. Default and Enforcement: Consequences of default, enforcement rights, and repossession procedures

10. General Terms: Standard contract provisions including notices, amendments, governing law, and dispute resolution

What sections are optional to include in a Conditional Sales Contract?

1. Insurance: Required when the goods are of high value or when insurance is mandatory during the payment period

2. Maintenance and Use: Include when the goods require specific maintenance or have usage restrictions during the payment period

3. Assignment: Include when either party may need to transfer their rights or obligations

4. Security Interest Registration: Required for high-value goods or when PPSR registration is necessary

5. Guarantees: Include when a personal or corporate guarantee is required for the purchase

6. Trade-In: Include when the purchase involves a trade-in of existing goods

What schedules should be included in a Conditional Sales Contract?

1. Schedule 1 - Description of Goods: Detailed description of goods including specifications, serial numbers, and condition

2. Schedule 2 - Payment Schedule: Detailed breakdown of payment amounts, dates, and installment calculations

3. Schedule 3 - Delivery Details: Specific delivery instructions, locations, and timeframes

4. Appendix A - Condition Report: Detailed report of the goods' condition at time of sale

5. Appendix B - Warranty Terms: Full warranty terms and conditions if applicable

6. Appendix C - Insurance Requirements: Detailed insurance requirements and minimum coverage specifications

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

New Zealand

Publisher

Genie AI

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions
Relevant Industries

Retail

Automotive

Manufacturing

Industrial Equipment

Agricultural

Construction

Technology

Machinery and Equipment

Consumer Goods

Commercial Equipment

Transportation

Relevant Teams

Legal

Sales

Finance

Operations

Procurement

Risk and Compliance

Commercial

Credit Control

Business Development

Contract Administration

Relevant Roles

Sales Manager

Commercial Director

Legal Counsel

Contract Administrator

Finance Manager

Credit Controller

Business Development Manager

Operations Manager

Procurement Manager

Risk Manager

Compliance Officer

General Manager

Chief Financial Officer

Sales Representative

Account Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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