Docstoc

Installment Sale Agreement

Document Sample
Installment Sale Agreement Powered By Docstoc
					An Installment Sale Agreement is between a vendor and a purchaser whereby the
purchaser buys goods for certain consideration, and that consideration is paid to the
vendor in installments or a series of payments. The purchaser will take possession of
the goods purchased but does not receive title to the goods until the total consideration
owing to the vendor is paid. This document in its draft form contains standard clauses
commonly used in these types of agreements. Additional language may be added
allowing for customization to ensure that the needs of the parties are addressed. Use
this agreement when purchasing or selling goods on an installment basis.
                   INSTALLMENT SALE AGREEMENT

       THIS INSTALLMENT SALE AGREEMENT (the “Agreement”), made this ___ day
of ____________, 2_____ [Instruction: Insert agreement date.] (the “Effective Date”), by and
between ________________ [Instruction: Insert Vendor name.] (the “Vendor”) and
_______________ [Instruction: Insert Purchaser name.] (the “Purchaser”).

       WHEREAS the Vendor is desirous to sell to the Purchaser and the Purchaser is desirous
to purchase from the Vendor the goods which are listed on SCHEDULE “A”annexed hereto
pursuant to the terms and conditions contained herein.

       NOW THEREFORE in consideration of the promises and mutual agreements herein
contained and other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged by the Vendor and the Purchaser hereto, the Vendor and the Purchaser
hereby agree with one another as follows:

1. PAYMENT OF GOODS

          A. The Vendor shall sell and the Purchaser shall purchase the goods (the “Goods”)
             listed on SCHEDULE “A” annexed hereto.

          B. The Vendor and the Purchaser hereby agree that the consideration to be paid by
             the Purchaser to the Vendor for the Goods shall be the amount of _____________
             ($_______) [Instruction: Insert dollar amount to be paid.] Dollars plus interest
             at a rate of ___ (__%) percent [Instruction and Comment: If any, insert written
             amount of interest, followed by numerical amount in parentheses. The
             maximum interest permitted to be charged on any loan is regulated by
             individual state usury laws. Parties should research the maximum amount
             permitted by law in their state. Further, in the event no interest is being
             charged, the parties should consult with an attorney and/or tax professional
             licensed in their state to determine what, if any, tax implications could arise
             as a result of same.] (the “Consideration”), which shall be paid by the Purchaser
             in installments as set forth below.

          C. The Purchaser shall pay the Consideration in installments to the Vendor at the
             Vendor’s place of business located at _____ [Instruction: Insert payment office
             address.], or at such other address as the Vendor in writing may direct.

          D. The Purchaser and the Vendor hereby agree that any and all unpaid amounts due
             and owing to the Vendor shall remain in full force and effect and that the
             Vendor’s security interest in the Goods sold to the Purchaser shall remain
             perfected until or unless the Consideration is paid in full.

          E. The Purchaser hereby agrees that it shall make any and all installments due to the
             Vendor, or to such other party as Vendor shall direct until the Consideration is
             paid in full.
            F. The Purchaser shall pay the Consideration to the Vendor for the Goods purchased
               payable in installments as follows:

                 a.      in equal weekly/monthly [Instruction: choose appropriate.] installments
                         of __________ ($______) Dollars, payable on or before the ______ day of
                         each and every week/month, save and except the last instalment which
                         shall be due on the ____ day of ___________, 2_____; [Instruction:
                         insert agreement terms.]; and

                 b.      the first installment due by the Purchaser to the Vendor shall be payable
                         on the ____ day of __________, 2_____[Instruction: insert appropriate
                         date.].

                 c.      All payments shall be made not later than 2:00 p.m. local time on the
                         Payment Date or due date to the Vendor at its address set out herein and
                         all payments made after that time on the Payment Date or due date shall be
                         deemed for the purposes of interest and fee calculations only to have been
                         received by the Vendor on the next succeeding Business Day.

                 d.      In the event that any payment hereunder, including any payment of the
                         Consideration, interest, fees or other amounts due hereunder would be due
                         on a day that is not a Business Day, such payment shall be made on the
                         first Business Day thereafter. For purposes of this paragraph, any such
                         payment made on the first Business Day thereafter shall not be considered
                         late.

                 e. 
				
DOCUMENT INFO
Description: An Installment Sale Agreement is between a vendor and a purchaser whereby the purchaser buys goods for certain consideration, and that consideration is paid to the vendor in installments or a series of payments. The purchaser will take possession of the goods purchased but does not receive title to the goods until the total consideration owing to the vendor is paid. This document in its draft form contains standard clauses commonly used in these types of agreements. Additional language may be added allowing for customization to ensure that the needs of the parties are addressed. Use this agreement when purchasing or selling goods on an installment basis.