Title 6, Commerce and Trade

§ 4305. Information required to be shown in contract. (a) Except as provided in §§ 4327-4332 of this title, a contract shall contain the following: (1) The names of the seller and the buyer, the place of business of the seller, the residence or place of business of the buyer as s…

§ 4306. Blank spaces to be filled in before signing by buyer. The seller shall not obtain the signature of the buyer to a contract when it contains blank spaces to be filled in after it has been signed.6 Del. C. 1953, § 4306; 52 Del. Laws, c. 342.;

§ 4307. Insurance; cost and procurance of; notice or copy of policy to be furnished to buyer. If the cost of any insurance is included in the contract and a separate charge is made to the buyer for such insurance: (1) The contract shall state whether the insurance is to be procur…

§ 4308. Delinquency charges. A contract may provide for the payment by the buyer of a delinquency charge on each installment in default for a period of not less than 10 days in an amount not in excess of 5 percent of such installment or $5.00, whichever is less, but a minimum cha…

§ 4309. Copy of signed contract to be furnished to buyer; acknowledgment by buyer. The seller shall deliver or mail to the buyer, at the address shown on the contract, a legible copy thereof completed, in accordance with the provisions of this chapter. Until the seller does so, t…

§ 4310. Contracts made by mail or telephone without solicitation by salesperson. Retail installment sales negotiated and entered into by mail or telephone without personal solicitation by a salesperson or other representative of the seller, where the seller’s cash and deferred pa…

§ 4311. Provisions prohibited in contracts. No contract or obligation shall contain any provision by which: (1) The buyer agrees not to assert against a seller a claim or defense arising out of the sale or agrees not to assert against an assignee such a claim or defense other tha…

§ 4312. Assignment of contract; notice to buyer. No right of action or defense arising out of a retail installment sale which the buyer has against the seller, and which would be cut off by assignment, shall be cut off by assignment of the contract to any third party whether or n…

§ 4313. Prohibition of lien on goods fully paid for. No contract other than 1 for services shall provide for a lien on any goods theretofore fully paid for or which have not been sold by the seller.6 Del. C. 1953, § 4313; 52 Del. Laws, c. 342.;

§ 4314. Prohibited provisions in contract as void. Any provision in a contract which is prohibited by this chapter shall be void but shall not otherwise affect the validity of the contract.6 Del. C. 1953, § 4314; 52 Del. Laws, c. 342.;

§ 4315. Service charges authorized; calculation. A retail seller or the holder of a retail installment contract may charge and collect a service charge in respect of a retail installment sale and may calculate such service charge in the manner and at the rate or rates specified i…

§ 4316. Period of installment payments. Contracts may be payable in successive monthly, semimonthly or weekly installments.6 Del. C. 1953, § 4316; 52 Del. Laws, c. 342.;

§ 4317. Charges included in contract service charge; additional charges prohibited. The service charge shall be inclusive of all charges incident to investigating and making the contract and for the extension of the credit provided for in the contract, and no fee, expense or othe…

§ 4318. Charges included in contract service charge; additional charges prohibited. Transferred.

§ 4319. Splitting or dividing of sales transactions prohibited. Repealed by 63 Del. Laws, c. 2, § 16, eff. June 1, 1981.

§ 4320. Payment to last known holder as discharge of buyer in absence of notice of assignment. Unless the buyer has notice of actual or intended assignment of a contract or installment account, payment thereunder made by the buyer to the last known holder of such contract or inst…

§ 4321. Periodic statements of account. At any time after its execution, but not later than 1 year after the last payment made thereunder, the holder of a contract shall, upon written request of the buyer made in good faith, promptly give or forward to the buyer a detailed writte…

§ 4322. Prepayment; refund of service charge. (a) A buyer may prepay the debt due under a retail installment contract in full at any time. (b) If the service charge imposed pursuant to § 4315 of this title in respect of a retail installment sale has been precomputed and taken in …

§ 4323. Acknowledgment of payment in full; release of security in goods. After the payment of all sums for which the buyer is obligated under a contract and upon demand made by the buyer, the holder shall deliver, or mail to the buyer’s last known address, such 1 or more good and…

§ 4324. Deferred payments; charges. A holder may at any time or from time to time permit a buyer to defer installment payments due under the terms of a retail installment contract and may, in connection with such deferral, charge and collect deferral charges and may also require …

§ 4325. Refinancing of unpaid balance; charges; agreement for refinancing. The holder of a retail installment contract or contracts may, upon agreement in writing with the buyer, refinance the payment of the unpaid time balance or balances of the contract or contracts by providin…

§ 4326. Default in payment of certain installments; buyer entitled to new payment schedule. In the event a contract provides for the payment of any installment which is more than double the amount of the average of the preceding installment, the buyer, upon default of this instal…

§ 4327. Addition of subsequent purchases to contract. A retail installment contract which otherwise conforms to the requirements of this chapter, may contain the provision that the seller may at the seller’s option add subsequent purchases made by the buyer to the contract, and t…

§ 4328. Allocation of payments made subsequent to add-on purchases. When a subsequent purchase is made, the entire amount of all payments made previous thereto shall be deemed to have been applied toward the payment of the previous time sale price or time sale prices. Each paymen…

§ 4329. Memorandum on subsequent purchases to be furnished to buyer. (a) When a subsequent purchase is made, the seller shall deliver to the buyer, prior to the due date of the first installment, a memorandum which shall set forth the following: (1) The names of the seller and th…

§ 4330. Obligation of buyer in absence of memorandum. Until the seller delivers to the buyer the memorandum as provided in § 4329 of this title, the buyer shall be obligated to pay only the cash sale price of the subsequent purchase.6 Del. C. 1953, § 4330; 52 Del. Laws, c. 342.;

§ 4331. Service charge on consolidated time balance. Subject to the other provisions of §§ 4315-4317 of this title, the service charge to be included in a consolidated time balance shall be determined by applying the service charge at the applicable rate specified in that article…

§ 4332. Minimum service charge in add-on transactions. The minimum service charge as provided in paragraph (3) [repealed] of § 4315 of this title may be used but once in any series of add-on transactions.6 Del. C. 1953, § 4332; 52 Del. Laws, c. 342.;

§ 4333. Purchase of contract by financing agency authorized; notice of assignment not required. Notwithstanding any contrary provision of this title, a financing agency may purchase a retail installment contract or installment account from a seller on such terms and conditions an…

§ 4334. Establishment of retail installment account authorized; statement of service charges to be furnished to buyer. A retail installment account may be established by the seller upon the request of a buyer or prospective buyer. The statement that “service charges not in excess…

§ 4335. Confirmation of account by seller; contents; proof of mailing. (a) At the time a seller accepts the credit of the buyer and establishes a retail installment account for that buyer’s use, the seller shall confirm this fact to the buyer in writing. Such confirmation shall c…

§ 4336. Display of service charge rates by seller. Each retail seller, before the retail seller can benefit from the service charges permitted by this subchapter, shall display prominently in the retail seller’s main place of business and in each branch thereof, a statement outli…

§ 4337. Service charge. Subject to the other provisions of this subchapter a retail seller or the holder of a retail installment account may charge and collect a service charge computed on the outstanding unpaid indebtedness in a buyer’s retail installment account and may calcula…

§ 4338. Monthly statement of account. (a) The seller or holder of a retail installment account shall promptly provide the buyer with a statement as of the end of each monthly period (which need not be a calendar month) setting forth the following: (1) The balance due to the selle…

§ 4339. Charges included in installment account service charge; additional charges prohibited. The service charge shall include all charges incident to investigating and making the retail installment account. No fee, expense, delinquency, collection or other charge whatsoever sha…

§ 4340. Insurance; cost and procurance of. If the cost of any insurance is to be separately charged to the buyer, there shall be an agreement to that effect, signed by both the buyer and the seller, a copy of which shall be given or furnished to the buyer. Such agreement shall st…

§ 4341. Security interest of seller in goods. Nothing in this subchapter prohibits the execution of an agreement between a buyer and seller whereby the seller retains a security interest in goods sold to the buyer until full payment therefor has been made. Section 4328 of this ti…

§ 4342. Notes cutting off buyer’s right of action or defense against seller prohibited. No retail installment account shall require or entail the execution of any note or series of notes by the buyer which, when separately negotiated, will cut off as to third parties, any right o…

§ 4343. Application of other sections to retail installment accounts. The provisions of §§ 4320 and 4323 of this title shall apply to retail installment accounts.6 Del. C. 1953, § 4343; 52 Del. Laws, c. 342.;

§ 4344. Award of reasonable attorney’s fees and court costs to prevailing party. A contract or installment account may provide for the payment of reasonable attorney’s fees and actual court costs if it is referred to an attorney for collection. Reasonable attorney’s fees and cost…

§ 4345. Limited exemption of salary or wages. In addition to any existing exemption under any other provisions of law, the salary or wages of a defendant are exempt from attachment for a period of 60 days from the date of default of the contract or installment account for any cla…

§ 4346. Remedies available to holder on default of buyer. In the event of any default by the buyer in the performance of obligations under a contract or installment account, the holder, pursuant to any rights granted therein, may proceed to recover judgment for the balance due wi…

§ 4347. Violation as misdemeanor. Any person who shall wilfully violate this chapter shall be guilty of a misdemeanor.6 Del. C. 1953, § 4347; 52 Del. Laws, c. 342.;

§ 4348. Knowledge by assignee of noncompliance with chapter as barring recovery of charges; recovery by buyer of charges paid. In case of failure by any person to comply with the provisions of this chapter, such person or any person who acquires a contract or installment account …

§ 4349. Correction of failure of compliance with chapter. Notwithstanding the provisions of this subchapter, any failure to comply with any provision of this chapter may be corrected within 10 days after the holder notices such failure or is notified thereof in writing by the buy…

§ 4350. Wilful violations in connection with consolidated contracts as barring recovery of charges; recovery by buyer of charges paid. Section 4349 of this title shall not apply to any person who wilfully violates any provision of this chapter in connection with the imposition, c…