The Layaway Agreement

A layaway in an agreement wherein the seller agrees to sell something to a buyer (usually) for a down payment and the buyer agrees to make installment payments, with provision for delivery of that 'something' upon completion of compensation and/or provision for the forfeiture/refund of money upon the failure to complete the agreement.

Layaway Plans

Layaway plans are for people who want to purchase something but cannot pay in full at the point of sale. Different layaway plans are available and are often offered by consignment shops, boutiques and jewelry and clothing stores.

Layaway vs Credit

Layaways are literally the opposite of credit-card purchases in that the credit-card buyer takes delivery of the product or service at the point of sale while the layaway buyers takes delivery upon the completion of installments. No immediate gratification there!

Layaway Provisions

When buying on layaway, it's important to pay attention to these details:

• Confirm the store's policy about layaway.
  
  
• Get a legible copy of the Agreement. The Agreement would include the schedule of payments, refund/exchange provisions, the disposition of your purchase, any and all fees.
  
  
• Negotiate terms. The seller wants to do business. You want to buy, maybe. (Act like you don't.) It's ok to write in desired agreements or strike unacceptable ones, with the changes initialed by all parties. Make it fun, not confrontational. After all, you probably could be good friends once you get this business relationship/intro behind you.

Layaway Policy

These are typical Layaway Policy Provisions:

Sliding-Scale Payments

• A minimum purchase is set to qualify for layaway.
• Larger purchases are allowed more leniency like longer time for payment and price discounts.

Status of First Payment

• Refundable?
• Stocking Fee?

Termination Provisions

• Are payments forfeited?
• Are they applied as store credit?
• If so, for how long is the credit redeemable?
• Are there refunds?

Fees

• When are payments considered to be late?
• What happens when the late period is exceeded?
• Restocking fees?

Layaway Restrictions

• What if a similar item later goes on sale? Do I get/give the lower price?
• Are layaways prohibited for any reason, like times of the year (holidays)?
• Are layaways available for any product/service offered?
• What about customer dissatisfaction? Returns? Refunds? Exchange?

Sample Layaway Form and Plan

1. Purchases $.01 to $300 = 3-payment plan. 1/3 down, 1/3 in 30 days and the remaining 1/3 in 60 days.

2. Purchases $300.01 to $600 = 4-payment plan. 1/4 down, 1/4 in 30 days, 1/4 in 60 days and the remaining 1/4 in 90 days.

3. Purchases $600.01 plus = 6-payment plan. 1/6 down, 1/6 in 30 days, 1/6 in 60 days, 1/6 in 90 days, 1/6 in 120 days and the remainder in 150 days.

4. No layaway on purchases that total less than $100.00.

5. The first installment is a restocking fee and is non-refundable. Any layaway cancellations or changes will be charged the restocking fee and any remaining credits will be given as a store credit. Store credits are good for 90 days. There are no refunds.

6. Late installments (more than 5 days) will be charged a $5.00 processing fee. If an installment becomes 30 days late, the restocking fee will be charged immediately and any remaining credit will become a store credit for the customer.

7. The price of the doll on the date the layaway is started is what the layaway order will be billed at, whether the doll goes on special or has a price increase later.

8. We do not accept any new layaways between 12/1 and 12/31 of each year.

9. To place order on layaway, please place the order through the secure server on this web site and under "Special Instructions" note that you are purchasing under the Layaway Plan.

10. There are absolutely no refunds, exchanges or changes on layaways. Damaged merchandise can be returned for the same item only.

Layaway Precautions

Remember: Until the final remittance is made, the good or service belongs to the seller. If it goes out of business you may be out of luck. Doing business with reputable dealers and people you know of course will protect you against this. As a store owner, you're totally protected because you remain in possession of the sold item until you are fully remunerated. In any case, either party should keep payment records that are acknowledged by the other party, with some written evidence of that acknowledgment, like a receipt.

Common Layaway Uses

Layaway plans are most commonly used in North Carolina for the purchase of dining room and living room furniture. Elsewhere layaways are routinely offered by shopping malls and outlets like Sears, Target and Wal Mart. Vacation packages are also purchased via layawya plans.

Also: layway, lay away, lay a way

Wiki: Layaway