408.260. Time contract, how executed--required contents--additional notes to cut off buyer's rights prohibited--waiver of buyer's legal remedies prohibited.
Time contract, how executed--required contents--additional notes tocut off buyer's rights prohibited--waiver of buyer's legal remediesprohibited.
408.260. 1. Each retail time contract shall be in writing, shall besigned by both the buyer and the seller, and shall be completed prior to thesigning of the contract by the buyer. In addition to such retail timecontract, the seller may require the buyer to execute and deliver a negotiablepromissory note to evidence the obligation created by the retail timecontract, and the seller may require security for the payment of suchobligation or the performance of any other condition of the contract, in whichcase the retail time contract may evidence such security. The fact that anote given to evidence a retail time contract contains the matters and thingswhich sections 408.250 to 408.370 require be included in a retail timecontract shall not render such note nonnegotiable under any of the provisionsof article 3 of chapter 400, RSMo, if such note is not otherwise nonnegotiableunder said chapter. Any such additional document or documents shall becompleted prior to the signing thereof by the buyer. No retail time contractshall require or entail the execution by the buyer of any note or series ofnotes which, when separately negotiated, will cut off as to third parties anyright of action or defense which the buyer may have against the seller.
2. The printed portion of the contract, other than instructions forcompletion, shall be in at least eight point type. The contract shall containthe following notice in a size equal to at least ten point bold type:
"NOTICE TO THE BUYER:
(1) DO NOT SIGN THIS CONTRACT BEFORE YOU READ IT OR IF IT CONTAINS ANYBLANK SPACES.
(2) YOU ARE ENTITLED TO AN EXACT COPY OF THE CONTRACT YOU SIGN.
(3) UNDER THE LAW YOU HAVE THE RIGHT TO PAY OFF IN ADVANCE THE FULLAMOUNT DUE AND UNDER CERTAIN CIRCUMSTANCES TO OBTAIN A PARTIAL REFUND OF THETIME CHARGE."
3. The seller shall deliver to the buyer, or mail to him at his addressshown on the contract, a copy of the contract signed by the seller. Until theseller does so, a buyer who has not received delivery of the goods or beenfurnished the services shall have the right to rescind his agreement and toreceive a refund of all payments made and return of all goods traded in to theseller on account of or in contemplation of the contract, or if such goodscannot be returned, the value thereof. Any acknowledgment by the buyer ofdelivery of a copy of the contract shall be in a size equal to at least tenpoint bold type and, if contained in the contract, shall appear directly abovethe buyer's signature. The buyer's acknowledgment, conforming to therequirements of this subsection 3, of delivery of a copy of the contract shallbe conclusive proof of such delivery, and that the contract when signed didnot contain any blank spaces except as provided in subsection 7 or section408.270, and of compliance with this section in any action or proceeding by oragainst a holder of the contract without knowledge to the contrary when hepurchases the contract.
4. The contract shall contain the names of the seller and the buyer, theplace of business of the seller, the residence of the buyer as specified bythe buyer and a brief description of the goods sold or services furnished orto be furnished, and shall clearly state and describe any collateral securitytaken for the buyer's obligation.
5. The contract shall contain the following items:
(1) The cash sale price of the goods or services;
(2) The amount of the buyer's down payment, and whether made in money orgoods, or partly in money and partly in goods, including a brief descriptionof the goods traded in;
(3) The difference between items (1) and (2);
(4) The amount, if any, if a separate charge is made therefor, includedfor insurance and other benefits, specifying the types of coverage andbenefits and the coverage periods and separately stating each amount for eachinsurance premium or benefit;
(5) The amount of official fees;
(6) The principal balance which is the sum of items (3), (4) and (5);
(7) The amount of the time charge;
(8) The amount of the time balance, which is the sum of items (6) and(7), payable in one or more deferred payments by the buyer to the seller, andthe amount of each such payment and the due date or period thereof;
(9) The time sale price. The above items need not be stated in the sequence or order set forth.
6. A retail time contract need not be contained in a single document.If the contract is contained in more than one document, then one such documentmay be an original document applicable to purchases of goods or services to bemade by the retail buyer from time to time and in such case such document,together with the sales slip, account book or other written statement relatingto each purchase, shall set forth all of the information required by thissection and shall constitute the retail time contract for each such purchase.
7. No retail time contract shall be signed by any party thereto when itcontains blank spaces to be filled in after it has been signed except that, ifdelivery of the goods is not made at the time of the execution of thecontract, the identifying numbers or marks of the goods or similar informationand the due dates of the payments may be inserted in the contract after itsexecution.
8. Upon written request from the buyer the holder of a retail timecontract shall give or forward to the buyer a written statement of the datesand amounts of payments received and charges imposed and the total amountunpaid under such contract. A buyer shall be given a written receipt for anypayments when made in cash.
9. No provision in a retail time contract relieving the seller fromliability for any legal remedies which the buyer may have against the sellerunder the contract or any separate instrument executed in connection therewithshall be enforceable.
10. After payment of all sums for which the buyer is obligated under acontract and upon written demand made by the buyer the holder shall deliver ormail to the buyer at his last known address one or more good and sufficientinstruments to acknowledge payment in full and shall release all security inthe goods or in any collateral security.
11. No retail time contract shall contain any provision by which thebuyer agrees to relieve the seller, assignee or holder of any liabilities, orwhereby the buyer agrees to waive any claim, rights or legal remedies whichthe buyer may have against the seller, assignee or holder under the retailtime contract.
(L. 1961 p. 638 § 4, A.L. 1965 p. 95, A.L. 1975 S.B. 71)