Final answer:
To cancel an installment sale due to default by the buyer, the seller must usually send a notice of default, allow a cure period, issue a termination notice, and then reclaim the property according to the contract's terms and applicable law. An example from a standard agreement is the provision that allows immediate termination by either party upon failure to deliver possession, with a full refund of any sums paid.
Step-by-step explanation:
The procedures for canceling an installment sale of personal property due to a buyer's default of two or more payments could vary depending on the terms of the sale agreement and the laws of the jurisdiction where the transaction occurred. However, general steps to cancel such a contract typically include: firstly, sending a written notice of default to the buyer; secondly, giving the buyer an opportunity to cure the default within a specified time frame; thirdly, if the default is not cured, providing a notice of termination; and finally, reclaiming possession of the property. In transactions protected by a contract, it's essential to follow the written terms regarding default, which often include a detailed procedure for cancellation due to non-payment.
For example, under a standard agreement, if an owner is unable to deliver possession for whatever reason, both the resident (buyer) and owner can immediately terminate the agreement upon written notice, and any sums paid must be refunded in full. However, if neither party cancels, the agreement becomes effective from the date of actual possession. Therefore, in installment sale defaults, similar procedures may apply in reassuring the rightful restoration of ownership and financial settlement.