Layby Law and Legal Definition

The term layby refers to a process of buying goods. In a layby, the goods are held by a retailer until the payment is made in full. The implication regarding payment in layby and the time when the full payment must be made is determined between the buyer and the seller. Therefore, layby refers to a contract between the buyer and the seller to pay for goods over a period of time rather than upfront. In most layby agreements an initial deposit will be made by the buyer and this will be followed by a regular payment.