Fwd: Re: how to recors a layby

Doug Laidlaw laidlaws@murraytel.com.au
Wed, 19 Dec 2001 17:11:06 +1100


I am a  retired lawyer in Victoria, Australia, and the legal position here is 
basically the same as in New Zealand.

A lay-by transaction is one of those consumer arrangements which are rarely 
considered by the law.  The basic characteristics are:

The contract is for identified goods.  Rob is entitled to the lens he 
selected in the shop.  It is put aside for him until it is fully paid for.

There is no agreed date for finalization, and there are no fixed dates or 
amounts for payment of instalments, although most stores set a minimum for 
this.  No interest is payable.  A charge for storage of the goods can be 
made, but I have never heard of one in practice.

That is the total of the only legal definition I could find.  It is generally 
understood that ownership does not pass until payment in full.  With a normal 
sale on credit, ownership passes when the contract is made.  Whether Rob has 
some claim on the lens for what he has paid on account, or what happens if he 
doesn't pay the full amount, would probably be set by a standard lay-by 
agreement, but only large retailers have one.

Hoping that this helps,

Doug.

----------  Forwarded Message  ----------
Subject: Re: how to recors a layby
Date: 19 Dec 2001 15:41:28 +1300
From: Rob Brown-Bayliss <on_the_net@clear.net.nz>
To: Eric E Moore <e.e.moore@sheffield.ac.uk>
Cc: GNUCash List <gnucash-user@gnucash.org>


> expense.  My guess is, if you can get all the money back if you change
> your mind, without any fees, then the money the camera store has is an
> asset (they're basically just holding onto your money as a
> convenience), but if there's some penalty (or no refunds at all), then
> you've bought that camera, and owe them the money.

Yes, I belive I can get all the money if I change my mind...  Have never
tested it though ;o)

SO then it would be an asset, but I see it as a bill I have to pay, so I
think I will leave it as a liability.

I have put the 450 in the expense account already, and thats the bit I
think is wrong, but it has to come to the liability account from some
where?  Any clues?

--

  Rob Brown-Bayliss
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