Retail Installment Sale Law and Legal Definition
Retail installment sale is a sale by a retail seller to a retail buyer for a deferred payment and the price is paid in installment. Retail installment sale can be conducted in sale of goods and for furnishing services.
The term 'retail installment sale' means and includes “every retail contract to sell a motor vehicle and every retail sale of a motor vehicle to any person (1) in which the cash price of the motor vehicle may be paid in installments over a period of time, and (2) in which the seller has taken or retained a security interest in the motor vehicle thereby contracted to be sold”. [Gersonde Equipment Co. v. Walters, 363 Mich. 49, 55 (Mich. 1961)].
The term 'retail installment contract' means any written instrument which is executed in connection with any retail installment sale and includes conditional sales contracts, purchase-money chattel mortgages and bailment leases retaining a security interest in the seller.