What it means
A lay-by agreement under the Australian Consumer Law is where a consumer pays for goods by instalments and the business holds the goods until the final payment. The agreement must be in writing and clearly set out the terms, including any termination charge. A consumer may cancel a lay-by at any time before delivery, and the business must refund amounts paid less a reasonable termination charge. Termination charges must not exceed the business's reasonable costs.
How it's used
She put a winter coat on a lay-by agreement and paid it off over six weeks before collecting it.