Scribd Logo
Upload

Welcome to Scribd!

  • Equipment Buyback Terms

    Uploaded by

    shipra damir
    1K views1 page
    The company will buy back equipment from customers in exceptional circumstances at a maximum of 20% of the initial cost, depending on the model, age, and condition. This takes into account the costs of selling, including exhibition costs, agent commissions, and delivery. The company would then resell the equipment at a reduced price to recover the buyback costs.

    Original Description:

    Original Title

    buy back policy of equipments

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The company will buy back equipment from customers in exceptional circumstances at a maximum of 20% of the initial cost, depending on the model, age, and condition. This takes into account the costs of selling, including exhibition costs, agent commissions, and delivery. The company would then resell the equipment at a reduced price to recover the buyback costs.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    1K views1 page

    Equipment Buyback Terms

    Uploaded by

    shipra damir
    The company will buy back equipment from customers in exceptional circumstances at a maximum of 20% of the initial cost, depending on the model, age, and condition. This takes into account the costs of selling, including exhibition costs, agent commissions, and delivery. The company would then resell the equipment at a reduced price to recover the buyback costs.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    Equipment Buy-Back.

     Should the company in exceptional circumstances agree to buy back equipment


    purchased by the customer this would be at a maximum of 20% of the initial cost of the equipment, dependent
    upon model, age and condition of the equipment. This takes into account the cost of the sale, which includes
    the cost of the exhibition or venue where the product was purchased, the agents time and commission,
    administrative and delivery costs. The company would then have the option to resell the equipment at a
    substantially reduced amount to recover the buyback cost.

    The buy back agreement definition is when an item or property is purchased, the vendor agrees to repurchase
    that at a stated price within a specified timeframe.
    1. Buyback Agreements Defined
    2. Repurchase Agreement vs Sell/Buyback

    The buyback agreement definition explains that when an item or property is purchased, the vendor agrees to
    repurchase said item or property at a stated price within a specified period of time if a certain event occurs. A
    buyback is a provision of a contract.

    Buyback Agreements Defined


    When a buyback takes place, it is because the seller has agreed in advance of a sale that he or she will
    repurchase an item of value from the buyer. The item of value may be equipment, real estate, insurance
    transactions, or another item.
    The seller usually offers to repurchase an item to encourage the sale or to alleviate a buyer's concerns. A
    buyback usually has a set period of time or takes place under certain conditions.
    The buyback provision may give the seller the right to repurchase the item under certain conditions. However,
    the seller is not obligated to do so.

    Repurchase Agreement vs Sell/Buyback


    Sell/buybacks and repurchase agreements function to serve as a means for the legal sale of collateral but act
    more like a secured loan or deposit. The main difference between the two is that the repurchase agreement is
    always in a written form of contract. A sell/buyback, however, may or may not be documented.
    Documented repurchase agreements or sell/buybacks, recorded in a written contract, are legally stronger and
    more flexible than those that are undocumented. Because of a lack of documentation, the sale and repurchase
    are considered to be two separate contracts.
    Without documentation between the parties, one party cannot legally enforce a margin call on the other party
    to eliminate differences that may have transpired in the cash or collateral value of the property or item. The
    exception to this only takes place on the first or last day of the transaction.
    In the event that one party defaults, it is less certain that there will be the responsibility of mutual obligations
    due to no documentation setting forth the terms and conditions.
    In the end, undocumented sell/buybacks are considered riskier than a repurchase agreement.

    You might also like