An add-on clause in a contract permits the utilization of prior purchases as a form of guarantee for future purchases. Essentially, if you make a purchase on an installment basis, the seller has the authority to employ that purchase as collateral for any subsequent purchases you make with them. In essence, it serves as a commitment that you will fulfil payment for all items bought from them, even if you have not completed payment for the initial purchase.
An add-on clause in an installment contract allows previous purchases to be used as collateral for new purchases. For instance, if a customer has already bought a computer on an installment plan, they can utilise it as security when purchasing a printer. This means that if the customer fails to make payments for the printer, the computer can be repossessed to cover the debt. Similarly, a furniture store offering an add-on clause can use a couch as collateral when a customer decides to buy a coffee table. This clause benefits both the customer and the seller. The customer can make additional purchases without going through the credit approval process again, while the seller gains added security for the new purchases.
An Add-On Clause is a provision in a contract that allows for additional terms or conditions to be added at a later time.
Yes, an Add-On Clause is legally binding if it is included in a valid contract and agreed upon by all parties involved.
Yes, an Add-On Clause can be added to a contract after it has been signed if all parties agree to the new terms and conditions.
An Add-On Clause should clearly state the new terms or conditions being added to the contract and how they will be implemented.
Yes, an Add-On Clause can be used to change the price of a contract if all parties agree to the new price.
Yes, an Add-On Clause can be used to extend the duration of a contract if all parties agree to the new timeline.
Yes, an Add-On Clause can be used to cancel a contract if all parties agree to the cancellation terms.
Yes, an Add-On Clause can be used to modify the scope of work in a contract if all parties agree to the new terms.
Yes, an Add-On Clause can be used to add new parties to a contract if all parties agree to the new terms.
Yes, an Add-On Clause can be used to waive certain rights or obligations in a contract if all parties agree to the new terms.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
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