This is a bilateral agreement entered into betweenandas of today The seller referred to hereby is a business person operating a business retailing in mobile phone accessories in the state of California. The buyer hereby referred to is a student at the University of California. The contract regards the sale of a mobile phone.
With regard to this mutual covenant, the parties agree as follows:
The seller agrees to transfer to the buyer, possession of a mobile phone, Nokia Lumia 520, on hire purchase terms, at a hire purchase price of $190, upon payment of a deposit amounting to $85.
Terms of installment payment:
After payment of the aforementioned deposit, the buyer agrees to further pay equal monthly installments amounting to $17 for a period of five months consecutively.
Legal ownership of the mobile phone:
The seller is to retain the legal ownership of the mobile phone, until the whole hire purchase price of $190 is settled by the buyer, after which the ownership will be permanently transferred to the buyer, with no option to return, unless only for repairing purposes.
Warranty:
The seller agrees to warrant the mobile phone for a period of one year starting on the date when possession of the mobile phone is transferred to the buyer. The warranty however does not cover for peripherals such as the charger and head phones.
Mode of payment:
All payments by the buyer will be effected through cash payment at the seller’s business premises.
Assertion:
Iassert that I have read and understood the terms and conditions contained herein, to which I agree. Iassert that I have read and understood the terms and conditions contained herein, to which I agree.
Contract analysis from the seller’s perspective:
I am entitled to receive a price from the buyer, which in this case acts as the consideration. This, therefore, means that, I will not be bound by this contract if there is a complete failure of consideration.
According to the agreement, the delivery of the mobile phone is only to be effected to the buyer after payment of deposit, failure to which I have no legal obligation to deliver possession.
As the seller, I am entitled to retain the legal ownership of the mobile phone in question, until the buyer settles the whole hire purchase amount. The implication of this is that in case of payment default on the buyer’s part, I have a legal right to repossess the phone.
The mode of payment agreed upon is by cash. This entitles me to refuse payment in a form other than cash payment.
The agreement states after full transfer of ownership, the buyer can only return the phone for repairing purposes, and this entitles me to refuse accepting it, if it is returned for purposes or motives other than that.
