Completion and commitment
When the arrangement becomes binding
Completion, seller warranties, and the funding commitment determine when the arrangement takes effect and what the seller becomes obliged to do from that moment onward.
Completion
When the arrangement takes effect
The arrangement is conditional on the underlying vehicle sale being completed. Until the purchase price is paid in full, the arrangement has no operative effect.
Moment of completion
Completion occurs at the moment the purchase price is paid in full by the buyer to the seller.
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Moment of completion
Completion occurs at the moment the purchase price is paid in full by the buyer to the seller.
- The arrangement remains conditional before that point.
- No substantive obligation applies before completion.
- If the sale does not complete, the arrangement falls away automatically.
Seller warranties
The seller gives core sale assurances alongside the arrangement.
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Seller warranties
The seller gives core sale assurances alongside the arrangement.
- The seller warrants ownership or authority to sell.
- The seller warrants that undisclosed finance or encumbrances do not exist.
- The seller warrants, to the best of their knowledge, the condition described in the sale materials and Schedule 1.
Seller commitment
What begins once completion happens
At completion, the seller funding commitment begins immediately and continues for the protection window and the further contract period that follows it.
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How late payment and failure to engage are treated once an amount becomes due.
Proceed once the sale terms and seller commitment are acceptable.
Funds held available
The seller must keep the selected amount available in immediately usable form.
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Funds held available
The seller must keep the selected amount available in immediately usable form.
- The relevant amount is the selected protection amount.
- The commitment lasts for the protection window and the following period described in the agreement.
- The period can continue longer if a dispute remains unresolved.
Material breach
The seller must not take steps that make payment impossible.
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Material breach
The seller must not take steps that make payment impossible.
- The funding commitment is a material inducement to the buyer.
- Undermining that commitment is treated as a material breach.
- That is separate from later consequences for late payment or non-engagement.