The act of transferring ownership of a cellular device that still has an outstanding balance on its financing agreement or contract is a complex situation. For example, an individual might attempt to sell a smartphone purchased through a carrier’s installment plan before completing all required payments.
Understanding the implications of such a transaction is paramount. Such actions can lead to legal and financial repercussions for both the seller and the buyer. Historically, these situations have arisen due to a lack of awareness regarding the terms of service associated with phone financing and contract agreements.