Instalment Payment Agreement

Instalment buying

A customer has bought your product and would like to pay in instalments. The buyer always has to make a first down payment. The residual debt is paid in instalments. The buyer is not allowed to rent out the item before the end of the agreement. If an instalment is not paid in time, you can reclaim the product.

What to fill in yourself

You can specify the purchased item yourself and state the interest and the amount of the instalments. It’s up to you to calculate the separate amounts of the instalments. And if you are selling to consumers, you must take into account the maximum amount of interest that can be included in the purchase price.

Summary

Contains provisions on:

• Nature of the product;
• Date of transfer;
• Amounts of the instalments;
• Mode and interval of the installment payments;
• Seller security;
• Possibilities to terminate the agreement unilaterally;
• General terms and conditions from the purchase agreement.

Context

This document can be used in the following situation:
Instalment sale has two options. This agreement includes a transfer of ownership from the seller to the buyer. Payment is in instalments. To some extent the seller is protected during this period. The other option is that the final payment must have been received by the seller before transfer of ownership.