Cash and Credit
2112. If a commodity is sold for cash, after concluding the transaction, the buyer and seller can demand the commodity and money from each other and take possession of it. The transference of things like house, land and the likes of them means that the original owner renounces all his right over them and hands it over to the opposite party with full rights over it. In case of mat, clothes and the likes of them, they should be handed over to the owner in such a way that if the owner wants to take it to some other place, the seller should not be a hindrance to it.
2113. When something is sold on credit, the period should be fixed clearly. If a commodity is sold with a condition that the seller would receive the price at the time of harvest, the transaction is void since the period of credit has not been specified clearly.
2114. If a commodity is sold on credit, the seller cannot demand what he has to receive from the buyer before stipulated period is over. However, if the buyer dies, and has some property of his own, the seller can claim the amount due to him from the heirs of the buyer, before the stipulated period is over.
2115. If a person sells a commodity on credit, he can demand the debt from the buyer after expiry of the stipulated period. However, if the buyer cannot pay it, he should give him extension of time.
2116. If a person gives a quantity of some commodity on credit to a person who does not know its price, and the seller does not tell him about its price, the transaction is void. However, if he gives it on credit to a person who knows its cash price, and charges a higher price, for example, if he tells him “I shall charge one cent per dollar more on the commodity, which I am giving to you on credit, as compared to what I charge against cash" and the buyer accepts this condition, there is no harm in it.
2117. If a person sells a commodity on credit, and stipulates a period for receiving its price, for example, after the passage of half of the stipulated period, he reduces his claim and takes the balance in cash; there is no harm in it.