2.5 Sphere of application
The following conditions have to be satisfied in order for the Convention to apply:
1) The parties must have entered a security agreement, a title reservation (a conditional sale) agreement, a leasing agreement or an outright sale.
A security agreement by definition means an agreement by which the charger grants or agrees to grant to chargee an interest (including an ownership interest) in or over an object to secure the performance of any existing or future obligation of the charger or a third person.
A title reservation agreement means an agreement for the sale of an object on terms that ownership does not pass until fulfilment of the condition or conditions stated in the agreement.
A leasing agreement means an agreement by which one person (the lessor) grants a right to possession or control of an object (with or without an option to purchase) to another person (the lessee) in return for a rental or other payment. An agreement at the same time cannot be a security agreement and a title reservation or a leasing agreement, since the effects of these are different regarding for example remedies in case of default.
An outright sale means when ownership of an object is being transferred pursuant to a contract of sale11 and the interest is thereby transferred according to the terms of the contract12