What is a distinguishing factor between "conditional sales" and "installment contracts"?

The distinguishing factor between conditional sales and installment contracts lies in the structure of the payment terms in relation to ownership transfer. In a conditional sale, the buyer receives possession of the item but does not obtain full ownership until certain conditions are satisfied, often involving the full payment of the purchase price. This means the seller retains rights to the item until these conditions are met.

In contrast, installment contracts are designed for periodic payments over a specified duration, with the buyer making these payments at regular intervals. Ownership often transfers once the contract terms are fulfilled, but the buyer has immediate possession of the item.

This distinction clarifies that conditional sales are not strictly focused on the installment nature but rather on the condition tied to ownership, while installment contracts specifically emphasize a payment plan without such conditions affecting the transfer of ownership.