Lesson 15

Question 1

What is lay byes

Answer 1

Lay-byes is a form of credit sales where goods are not taken until they are fully paid for

Question 2

Rules

Answer 2

1. The seller should document the lay-bye transaction in detail and give the buyer a copy of the document. The seller should take the-item and leave it aside for the buyer.
2. The lay-bye goods should be kept safely and should not be kept as part of the ordinary stock.
3. If the person who took the lay-bye dies, the money that he has paid should be refunded to his heirs.
4. If the goods are damaged, soiled etc. the buyer has the option to take the goods or be refunded or take another item. This has to be done by mutual agreement.
5. The-seller should stipulates time period for his payment, but he cannot keep the money paid after this time period expires. Hewillhavetosend the money back to the buyer. Iftherewas no contract made and money was given in charity. Thereafter the buyer comes the seller will have to refund him his money.
   7. When a business is sold, lay-bye deals have to be honoured by the new owner or the buyer be refunded in full.
6. If there is any doubt in the contract the transaction is invalid.
7. If it was mutually agreed on at the initiation of the contract, the seller has a right to take storage costs, etc. when refunding money.