Last updated 9 January 2019

A lay-by is an interest free way to pay off goods while they are stored by the seller. Some sellers charge an administrative fee. The lay-by terms and conditions are set by the business. The price of the goods is the price on the day that the goods are first set aside.

It is lawful for a business to charge a reasonable termination fee (to recover their costs) if the consumer terminates or breaches the contract. The seller can also terminate the agreement if they are no longer in business or the goods are no longer available and the consumer is entitled to the return of all their money (ss 96–99 Australian Consumer Law).