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LSDefine
Simple English definitions for legal terms
credit sale
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A quick definition of credit sale:
A credit sale is when someone buys something but doesn't pay for it right away. They get to take the thing they bought, but they have to pay for it later. It's like borrowing money to buy something.A more thorough explanation:
A credit sale is a type of sale where the buyer is allowed to pay for the goods at a later time. This means that the buyer can take possession of the goods immediately, but payment is deferred to a later date. For example, if a customer buys a TV on credit, they can take the TV home and pay for it over time.
Example: John buys a laptop on credit from a store. He takes the laptop home and agrees to pay for it in monthly installments over the next year.
This example illustrates a credit sale because John is allowed to take possession of the laptop immediately, but payment is deferred to a later date.