"Conditional sale" means a transaction in which a buyer first takes possession of the subject property of the sale, under a stipulation that ownership of the subject property will pass to the buyer only upon the partial or full payment of the price of the property, or upon the fulfillment of a specific condition.

A conditional sale contract shall specify the following matters:
1. The names of the individuals or entities who are parties to the contract and their domiciles, residences, or places of business.
2. The name, quantity, and price of the subject property; the description of the specific serial number, identifying mark, or specification of the property, if there is any.
3. A statement that the seller retains ownership of and makes use of the subject property in his possession.
4. The method of payment for the subject property of the sale.
5. The conditions under which the buyer obtains ownership of the subject property.
6. The method whereby the seller exercises rights in rem and creditor's rights if the buyer fails to perform the contract.
7. If there is insurance, a statement that the beneficiary of the insurance shall be the seller.
8. The date of entering into the conditional sale contract.

If, before the transfer of ownership of the subject property to the buyer, the buyer has any of the following doings, to the detriment of the rights and interests of the seller, the seller may retrieve and take possession of the subject property:
1. Fails to pay the price of the property as stipulated.
2. Fails to fulfill the specific conditions as stipulated.
3. Sells, pledges, or otherwise disposes of the subject property.
If, when the seller retrieves and takes possession of the subject property of the preceding paragraph, there is significant depreciation in the value of the subject property, the seller may claim damages from the buyer.

Within 10 days after the seller retrieves and takes possession of the subject property, the buyer may request in writing that the seller resell the subject property. Even in the absence of such a request from the buyer, the seller may resell the subject property within 30 days after retrieving and taking possession of the property.
If the seller retrieving and taking possession of the subject property does not receive a request from the buyer for its resale under the preceding paragraph, or if the seller does not resell the subject property within the 30-day period as stipulated in the preceding paragraph, the seller has no obligation to refund to the buyer the price already paid for the subject property, and the conditional sale contract shall cease to be effective.

The provisions of Chapter II, Article 17, paragraphs 2 and 3 and Articles 18 to 22 shall apply mutatis mutandis to the seller and buyer in a conditional sale.

A personal property on which a mortgage has been created pursuant to this Act may not be the subject property of a conditional sale.
Any conditional sale contract that violates the provision of the preceding paragraph shall be void.