A conditional sales contract is an agreement between a seller and buyer that allows the purchase of goods or services on credit, provided that certain conditions are met. This type of agreement defines the responsibilities of both parties, such as payment schedules and late payment fees, as well as any other specific terms. A conditional sales contract can either be secured or unsecured, with the former requiring collateral to guarantee payment while the latter does not. With a conditional sales contract, buyers are able to spread their purchases over time, while sellers have the reassurance of receiving payments on a regular basis. In short, it’s an agreement offering greater financial freedom for both parties.