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Hi all!
Whew... I'm just worn out from all that wine, chocolate... mohair fights ... LOL!
I've decided to offer layaway for my bears. I've had a few people inquire about it and for those I have done it. Since teddy bears ARE a "luxury" purchase, I want to make it a little easier.
I've had no problems to date... but wanted to ask for advice from others who offer layaway before I advertise it on my website.
Like.. if they are paying via Paypal... do you have a form they fill out?
Thanks so much in advance! I won't be on probably for the rest of today. Getting a new bed delivered.. whoHOOO!!! 
(and laundry and grocery shopping 
In my layaway contract, which I e-mail, I specify the total price, the amount due per month, and the due dates for each payment (I call them "deposits"); the totals include any shipping and tax due.
I also specify that the first layaway payment constitutes agreement with the terms and conditions of the contract. The buyer wouldn't otherwise know exactly and precisely how much the first layaway payment (incl shipping and taxes) even WAS, if they hadn't read the contract and started a course of compliance with its terms.
If you'd like I can e-mail or post a copy of my layaway contract as a model. It's worked well for me to date!
bears by beesley TMI agree with Shelli Laura! I have done two lay aways and recieve a very prompt monthly payment. I dont see a problem at all! By the BY..........I must state for the record, I am no FLUZY!!!!!!!!NO NO!!!! Nor a LUSH!!!!!!!!!!!! But I do love the wine and chocolate. HaHa!!! :):)Dont knock it Girls till yah try it!!!! Also as far as those potty bears........they are truely OOAK. I challenge you guys to find another bathroom bear artist!!! HA HA :lol::lol::lol:
I will send you a pic soon of the beesley toilet room!
Hugs to all!!
Louise
Baird'sBearsI'd love to see your contract, Shelli. Good news about those prompt payments!
Eileen
Fool's Gold BearsI've done a few layaways, but they have not always resulted in prompt payments. I'd like to see your contract, Shelli. Maybe something in it will help me revise my policy. 
Kim-Bee BearsMaybe this is a silly question but what is OOAK????
Thanks Shelli!!!! I'd LOVE to see a copy of your contract!
Kim... OOAK is "One of a Kind"
Kim-Bee BearsLMAO - gee, that never dawned on me! Silly me!
Winneybears and FriendsId like to see the contract too...pease ... Winney
First let me log the disclaimer that I am not a lawyer and this document has not been authored by a lawyer. If you choose to use it as a model for your own layaway contract you do so at your own risk and I cannot, either as an individual or as a business entity, nor can Intercal as board host, be held responsible for any business transactions you undertake which may rely on this document. And bla bla bla... ;)
Hope it's helpful! Also, if anyone has suggestions for improving it, I'd be delighted to hear them. I learn something here every single day, too.
Kiprie BearsI saw many artist offer the layaways but never knew
how it's works. ...... thank you Shelli !
Marie
PS Just wanted to add, by the way, that I do edit this document with the precise information for each auction and then e-mail a copy of that edited document to the high bidder.
Also, on occasion I will have a customer who really wants a bear but can't do the three-payment plan, so then I just divide the payments into four (instead of three) equal amounts and revise the contract that way.
Whatever works for you and your collector base is what's best!
bears by beesley TMGreat prospect Shelli! You are so very clever Girl! I love the way you deal with these matters. Great Job! Thank you so much for the info. I to date, have not had a problem but it does not hurt to cover the old butt!!!!
Hugs Louise
Fool's Gold BearsThanks Shelli, for a very well thought out contract. It's all very clearly stated.
DoodlebearsI had a lady ask for layaway, which I offer. She made the first payment and then emailed me saying she had fallen on hard times and couldn't pay for the bears. I didn't pursue her for the money as it was only a very small inexpensive bear and not worth the problem of chasing her for such a small amount. I did however keep the first deposit as it was stated to her that the deposit is non-refundable. I have been messed around by another customer who wanted a particular bear. Firstly she had asked for me to use a special type of box for the bear, so I bought the box which was quite expensive seeing as the bear is 27 inches tall. I packaged the bear all up with his birth certificate filled in with her name and date of purchase. I took it into town to the main post office to get it weighed so I could get the exact type postage cost that she had asked for. During all this I was not feeling too well but as she had wanted the bear for a gift I carried on getting the information for her. Once home I emailed the lady with all the information and she emailed back saying she would pay me that evening by Paypal. By seven thirty I had been admitted into hospital where I stayed for six days. During this time my daughter Sarah had checked my email and Paypal account but there was nothing from the customer. When I was home from hospital I wrote to her and finally got a reply from her saying she refuses to pay such high charges for postage. This is a large bear and in a much heavier box than I would usually use for my bears , but it was only because she had requested the box in the first place. I wrote back explaining the reason that the charge was higher than it would usually be in my normal box. I received a nasty email saying that I am not fit to be selling bears as I am ripping off my customers with over inflated postage costs...go figure!
I still have the bear and the heavy box which I now use for storing things in.
Jane
Baird'sBearsThanks for posting your layaway contract, Shelli--I wouldn't know how to begin. It looks as if you've covered everything, including the flexibility clause! Firm but sweet . . .
Nancy, I'm sorry to hear about your nasty experience with that buyer. It sounds to me as if she got in over her head and decided to blame you for it! Unfit to sell bears indeed!
Eileen
Baird'sBearsI mean Jane! 
Oh Jane that is just terrible! I'm so sorry :(
Shelli, thank you thank you thank you thank you!!!! I'm not great with putting thoughts into words ... but your contract has now given me an idea of what to do!
Also... I remember looking a few days ago and I can't remember which artist... but she states that for layaway -- you must have a scanner. Because she emails them this contract, which they then sign... and then they must scan it and email it back to you. Especially if paying via paypal or credit card.
Well, here's the bottom line, when it comes to enforcement of contracts, or copyrights, etc....
The truth is, if someone defaults on a contract, or infringes on copyright, it might well be morally "wrong," and clearly so... but if you don't have a lawyer, or the means to hire one, or the gumption to pursue things all the way to court (even small claims court, where you get to be your own lawyer!), then there's essentially nothing you can do. Except feel lousy, gripe, or take small actions -- like, in the case of an eBay auction, reporting the nonpaying party to eBay.
So when it comes to my layaway contract, I try to keep things as firm and tight and carefully explained as possible. I haven't yet had any bad experiences. But if I did, it would be just a case of, "Hmmm... Well THAT sucks." I mean, on the most practical level... it's not like I'm gonna take anyone to court over a broken layaway contract.
However, the important part -- in terms of doing smart business -- is that I COULD take contract breakers to court, if I so chose.
So you have to take the entire "contract" thing with a grain of salt. I'm not sure having a signature or a scanned copy makes it any easier to enforce a layaway contract. It does give the extra validation of a signature; if it ever came down to presenting evidence to a judge or jury, that might be of use. A signature does not guarantee payment, or payment on time, tho, any more than not having one might. And the only way that seller -- even WITH that signature! -- could enforce her contract, would be to take that person to court, or pursue other legal means. A huge, HUGE hassle that would be, with monetary and time costs that make it not remotely worthwhile for most people.
I'm not remotely trying to discredit that seller, by the way -- who has a wonderful idea there that any lawyer would fully support! -- but rather, to speak realistically here. And realistically, signature or not, if someone broke a teddy bear purchase contract, it's unlikely any bear artist would pursue payment by taking that person in front of a judiciary that could USE that signature to hold accountable the contract breaker, and thus, FORCE compliance with the terms of the contract.
So, in developing your own contract... just some food for thought.
I'm glad my model might be helpful. I think it's fairly tightly written (I blame all those years working as an admin asst. in various law offices, and the fact that my sister is not just a lawyer, but a military (JAG) lawyer... in DC, no less), but I'm sure there are loopholes. Please advise if you spot any!
Just popping in real quick... but I think she requires a signature so that if a person does not finish paying for the bear... they can't have Paypal ALSO take back any deposts she may have paid (like a chargeback)(by saying the deposit is NOT refundable). Does that make sense? Hmmm... Maybe I'll take a peek at Paypal's policies... later when I have time
Good point, Laura. But I think if there is a standing contract with specified amounts and terms that would also serve as proof of default/contract even without a signature (otherwise, how would the buyer know exactly the amount to pay per installment?) Thankfully I haven't yet had to put it to the test. But that's some real food for thought...
Also, with my own layaway customers, they usually pay me with means other than PayPal (personal check, usually, or cashier's check.) My customers that use PayPal seem to use it for the entire purchase, and they tend to use it immediately (like, five minutes after the auction closes!) That might just be my experience, tho.
Maybe, Laura, you make a good point; that perhaps one should NOT accept PayPal for layaways, so that there is no possibility -- signature or otherwise -- that a "chargeback" could occur. ???
Anyone else have thoughts on this???
Kim-Bee BearsI think that you probably need signatures to enforce a contract (I work in a law firm). If there is no signature, then there is no "proof" that the person actually agreed to the terms - if you have a shady customer who says "I didnt know that there was a no refund policy, I didnt see anything or sign anything" - I personally would get a signature so that they can't say they didnt receive it. It is better safe than sorry! believe me, I have learned to cover my rear end!
Hey, I hear ya, and agree 100% that it's always better to get a signature. A notarized one, if possible, when it REALLY counts.
But because we're talking about contracts that will not contain an "original" signature -- in every case they would be faxed, or scanned, or transmitted via email -- I'm not sure how binding that signature might be. Any idea on that, Kim? I'd love to find out.
Again, tho... my larger point is not that "getting a signature doesn't matter in contract enforcement." It most certainly does!!!
Rather, my larger point is that, signature or not, a contract is only enforceable if the contract holder/writer is willing to pursue the consequences of said (broken) contract with a "higher authority." In other words, I'm not stressing too mightily over not getting signatures on my layaway contracts because, if someone defaulted, I wouldn't be forking $330/hr. over to a lawyer, with a $2500 retainer up front, just to recover $300. Especially since, in every case where layaway is concerned, I still have my product in hand and can resell it elsewhere at my sole discretion.
I don't know about you guys, but in Calfornia attorneys don't come cheap... and my time, a valuable commodity, doesn't either. I'm not really planning on taking anyone who breaks one of my contracts to court (although I would report them in a heartbeat to PayPal or eBay.) And to the best of my knowledge neither eBay nor PayPal require signature as proof of contract. If someone knows definitively otherwise, please let me know!
I'm not remotely trying to be argumentative here, and I certainly don't know everything about contract law. I'm just wanting to make sure you guys aren't getting all anxious and nervous about using layaway contracts (which can be an enormous help when your bears reach a certain price point and people wouldn't otherwise be able to adopt them!), jumping thru too many hoops. Just keepin' the big picture in mind here... ;):D
Kim-Bee BearsBut - in your layaway contract it does state that you will be keeping their deposits if they dont pay the rest so, that is on them if they dont pay it because you can sell the bear and make the difference or get more than that.
My experience with layaways has always been great. I used to submit a legal form such as Shelli's, but anymore I try to keep things as simple and informal as possible.
I usually type on my statement the date and amounts due for each month (usually three months duration). The last payment usually includes the shipping charges or I will list those separately. The dollar amount column is totaled at the bottom so the collector sees what the total cost is going to be. I print this statement and make a copy for myself so I can keep track of the payments as they are made or not made. As each payment is made, I pencil in the date and check that payment off.
So far I have had very good success with this approach. I did have one customer who was a month behind, but she did complete the layaway. Another collector couldn't wait for the final payment and made two payments so I could go ahead and ship the bear.
I know collectors appreciate this service and many would think twice before buying a bear if layaway was not offered. After all, you have the bear until it is paid for, so they are taking more of a chance than you are.
Wanda
