25 Del. C. ch. 51 § 5122
Equitable jurisdiction relating to converted conditional sales agreements
Operative Text
In addition to any other equitable authority granted to, or inherent in the powers of, the Justice of the Peace Court to hear and properly dispose of actions brought under Chapters 51 through 57, 63 and 70 of this title, that Court shall have the equitable jurisdiction, concurrent with the Court of Chancery, to fully determine the rights of all parties at the time of hearing any matter brought pursuant to the conversion of a conditional sales agreement to a landlord/tenant agreement by operation of § 314(d)(3) of this title. Such authority shall include, but not be limited to, an accounting for all payments made under the conditional sales agreement prior to the conversion of the contract to a landlord/tenant agreement.
Section 5122 of Title 25 of the Delaware Code grants the Justice of the Peace Court shared equitable authority with the Court of Chancery to resolve disputes that arise when a conditional sales agreement is converted into a landlord-tenant agreement under § 314(d)(3). This means the Justice of the Peace Court can fully adjudicate the rights of all parties involved in such a conversion, including ordering a full accounting of all payments made under the original conditional sales agreement before the conversion took place. The provision ensures that parties do not need to go to a separate court to have these financial and legal questions resolved.
Plain English — not legal advice.
Under 25 Del. C. § 5122, when a conditional sales agreement converts to a landlord-tenant relationship by operation of § 314(d)(3), property owners and managers should be prepared for the Justice of the Peace Court to exercise broad equitable powers over the entire transaction. A compliant operator generally maintains thorough records of all payments received under the original conditional sales agreement, since the court is expressly authorized to order a full accounting of those payments. Keeping organized financial documentation from the outset of the conditional sales arrangement helps ensure that any hearing under § 5122 can proceed efficiently.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Section 5122 of Title 25 of the Delaware Code gives tenants who were formerly parties to a conditional sales agreement an important procedural right: the Justice of the Peace Court can hear and fully resolve all claims arising from the conversion of that agreement to a landlord-tenant relationship, without requiring a separate action in the Court of Chancery. This includes the right to seek an accounting of every payment made under the original conditional sales agreement before the conversion occurred. Individuals in this situation may wish to gather their payment records and consult a tenant-rights organization or legal aid provider familiar with Delaware landlord-tenant law to understand the options available under § 5122.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 22, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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