You might be wondering…

“If I miss one installment, can I lose the item?”
“How exactly does the 10% threshold work in the law?”
“What if the buyer owes more than 10% of the price – does the seller have a free hand?”

My clients often ask…

“I sell machines on installments. The customer missed one small payment. Can I withdraw?”
“I bought a car on installments and paid one late. Can the seller take it back?”

What the law says in a nutshell

• § 2133 Civil Code: If transfer of ownership is subject to full payment of the purchase price in installments, the buyer’s default on one installment not exceeding 10% of the purchase price does not itself entitle the seller to withdraw from the contract.

• The buyer has the option to pay the overdue installment at the latest with the next installment.

• Only if the buyer fails to do so may the seller withdraw and demand the return of the item.

Practical significance of the rule

This provision balances the interests of both parties:

• The buyer is not at risk of losing the item over a minor delay – their investment is protected.

• The seller has security that if the buyer stops paying seriously (over 10% or fails to catch up), they can withdraw and reclaim the item.

Common mistakes in practice

• Sellers think they can withdraw immediately after the first missed installment – even if it’s only a small part of the price.

• Buyers wrongly believe that any delay is harmless – repeated or larger arrears give the seller the right to withdraw.

• Contracts often fail to clarify how the 10% is calculated – but it’s based on the total purchase price, not the size of the individual installment.

How to proceed correctly

If you are the buyer:

• Track your installments carefully; if you miss one, make sure to pay it with the next installment.

• Don’t assume that a “small arrear doesn’t matter” – if you exceed 10% of the total price, you risk withdrawal.

If you are the seller:

• Respect the statutory 10% limit. You cannot withdraw for every minor delay.

• If the buyer repeatedly defaults or exceeds the limit, exercise the right to withdraw in writing.

Practical examples

• The buyer owed 5% of the price – they caught up with the next installment. The seller had no right to withdraw.

• The buyer owed 15% of the price – the seller could withdraw and reclaim the item.

• The buyer owed 8% and failed to pay even with the next installment. The seller was entitled to withdraw.

Why relying on your own “agreement” is risky

Even a contractual clause cannot override the statutory limit to the buyer’s detriment – a court would declare it invalid. On the other hand, a seller who tolerates long-term non-payment without action risks losing protection.

Lawyer’s recommendation

I advise buyers: treat the 10% threshold as a warning sign, not a “grace buffer.”
I advise sellers: include a clear installment schedule in your contracts and set out the procedure for default, so you have strong evidence in hand.

FAQ

Can the seller withdraw if I miss one installment?
No, not if it’s under 10% of the price and you pay it with the next installment.

What if I owe more than 10% of the price?
The seller may withdraw and demand the item back.

Can stricter conditions be agreed in the contract?
No, the law protects the buyer – stricter terms would be invalid.