Final answer:
The seller usually retains rights to the installments in arrears when a lease of personal property is cancelled due to the buyer's default on payments. The specific rights are dictated by the lease agreement and local laws. Recovery of unpaid installments is generally allowed for the seller.
Step-by-step explanation:
When a seller cancels a lease of personal property due to the default of the buyer on two or more installment payments, the seller does generally retain rights to the installments in arrears. This means that the seller would typically be able to claim any unpaid installments that were due before the lease was canceled. This is because those payments are for the usage of the property that occurred prior to the termination. However, the exact rights and obligations would be determined by the terms of the lease agreement, and local laws governing such transactions. Many lease agreements include provisions that stipulate the consequences of default, including what happens to prior payments. If the lease is silent on this matter or the terms are unclear, local commercial or consumer protection law will fill in the gaps, often providing the seller with the right to recover unpaid installments.