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Installment Plan Agreement Template for Germany

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Key Requirements PROMPT example:

Installment Plan Agreement

"I need an Installment Plan Agreement for the sale of industrial machinery worth €75,000, with monthly payments over 24 months starting March 2025, including retention of title and mandatory insurance requirements for the equipment during the payment period."

Document background
The Installment Plan Agreement is essential for businesses offering payment flexibility to customers in Germany. It is particularly useful for high-value purchases where immediate full payment isn't practical or desired. The document must strictly comply with German Civil Code (BGB) requirements, especially §§ 491-505 regarding consumer credit agreements. The agreement includes crucial elements such as the total purchase price, installment schedule, interest rates, and effective annual rate (effektiver Jahreszins). It must provide clear information about payment terms, consequences of default, and the consumer's right of withdrawal. This document type is commonly used in retail, automotive, and other sectors where significant purchases are made, and it must balance commercial practicality with strong consumer protection measures under German law.
Suggested Sections

1. Parties: Identification of the seller/creditor and buyer/debtor, including full legal names, addresses, and registration details if applicable

2. Background: Context of the agreement and brief description of the transaction

3. Definitions: Definitions of key terms used throughout the agreement

4. Object of Purchase: Detailed description of the goods or services being purchased under the installment plan

5. Purchase Price and Payment Terms: Total purchase price, down payment, number of installments, installment amounts, and payment dates

6. Interest and Additional Costs: Interest rate (effective annual rate), processing fees, and total amount payable

7. Payment Method: Accepted payment methods and payment processing details

8. Delivery Terms: Conditions and timing of delivery of goods or services

9. Retention of Title: Seller's retention of ownership until full payment (Eigentumsvorbehalt)

10. Default and Late Payment: Consequences of missed payments and default procedures

11. Right of Withdrawal: Consumer's right to withdraw from the contract within 14 days (Widerrufsrecht)

12. Term and Termination: Duration of the agreement and conditions for early termination

13. Final Provisions: Governing law, jurisdiction, written form requirement, and severability clause

Optional Sections

1. Insurance Requirements: Required when the purchased item needs specific insurance coverage during the installment period

2. Security Interests: Used when additional collateral or security is required beyond retention of title

3. Third-Party Financing: Required when a financial institution is involved in providing the installment plan

4. Early Payment Provisions: Details of early payment options and any associated discounts or penalties

5. Usage Restrictions: Needed when there are specific restrictions on the use of goods during the payment period

6. Maintenance Requirements: Required for goods that need specific maintenance during the payment period

7. Assignment Rights: Used when either party needs the right to assign the agreement to third parties

Suggested Schedules

1. Payment Schedule: Detailed breakdown of all installment payments, including dates, amounts, and running balance

2. Product Specifications: Detailed technical specifications or description of the purchased items

3. Withdrawal Form: Standard form for exercising the right of withdrawal (Widerrufsformular)

4. Pre-contractual Information: Mandatory pre-contractual information as required by German consumer credit law

5. SEPA Direct Debit Mandate: If applicable, authorization for direct debit payments

6. Interest Calculation: Detailed breakdown of interest calculations and effective annual rate

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions

























Clauses
































Relevant Industries

Retail

Automotive

Consumer Electronics

Furniture and Home Furnishings

Manufacturing Equipment

Home Improvement

Luxury Goods

Medical Equipment

Agricultural Equipment

Industrial Machinery

Relevant Teams

Legal

Finance

Sales

Compliance

Risk Management

Customer Service

Credit Control

Commercial Operations

Contract Administration

Account Management

Relevant Roles

Legal Counsel

Finance Manager

Credit Manager

Sales Director

Retail Manager

Compliance Officer

Contract Administrator

Consumer Finance Specialist

Risk Manager

Commercial Director

Customer Service Manager

Account Manager

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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