Legal Definitions - memorandum sale

Definition: A memorandum sale is a conditional sale in which the buyer takes possession of the property but does not accept title until approving the property. It is a type of sale where the buyer has the right to approve the property before accepting the title.

Example: John wants to buy a car from a dealership. The dealership allows John to take the car for a test drive and use it for a few days. If John likes the car, he can accept the title and complete the purchase. If John does not like the car, he can return it to the dealership without accepting the title. This is an example of a memorandum sale.

Explanation: In a memorandum sale, the buyer has the right to approve the property before accepting the title. This means that the buyer can take possession of the property and use it for a certain period of time before deciding whether to accept the title or not. The example of John buying a car from a dealership illustrates this concept. John can take the car for a test drive and use it for a few days before deciding whether to accept the title or not.