Conditional Sales Contract Law and Legal Definition

According to 49 USCS § 40102 [Title 49. Transportation; Subtitle VII. Aviation Programs; Part A. Air Commerce and Safety; Subpart I. General; Chapter 401. General Provisions], the term conditional sales contract means "a contract

(A) for the sale of an aircraft, aircraft engine, propeller, appliance, or spare part, under which the buyer takes possession of the property but title to the property vests in the buyer at a later time on

(i) paying any part of the purchase price;

(ii) performing another condition; or

(iii) the happening of a contingency; or

(B) to bail or lease an aircraft, aircraft engine, propeller, appliance, or spare part, under which the bailee or lessee

(i) agrees to pay an amount substantially equal to the value of the property; and

(ii) is to become, or has the option of becoming, the owner of the property on complying with the contract."