Legal Definitions - retail installment contract and security agreement

A retail installment contract and security agreement is a legal document that outlines the terms of a purchase made on credit. It is a type of contract that creates obligations between two parties that are enforceable by law.

For example, if you buy a car on credit, you will sign a retail installment contract and security agreement with the dealership. This document will outline the terms of the loan, including the amount borrowed, the interest rate, and the repayment schedule. It will also include a security agreement, which gives the dealership the right to repossess the car if you fail to make your payments.

The retail installment contract and security agreement is a binding contract, which means that both parties are legally obligated to fulfill their obligations under the agreement. If either party fails to do so, the other party can take legal action to enforce the terms of the contract.