A layaway plan allows buyers and sellers to work out an agreement to set aside a specific product while the buyers make periodic installment payments. When the agreed-upon payments have been made in full, the consumers get to transfer possession of the item, and the business can not dispose of the good while it is covered under the layaway agreement.

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However, there are a variety of concerns that buyers should keep in mind prior to entering into such an agreement with a business to purchase an item on layaway. For example, what happens to the installments if the buyers change their mind or default on the installment payments? Or what if the corporation goes into bankruptcy like Circuit City did?

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In many circumstances of the buyer defaulting on the installments, the business has no right to keep all of the payments made up to that point. If the sale is never completed, the payments may not be retained by the business unless there have been damages as a result of the agreement being broken. But for most consumer products, this situation must be somewhat rare.