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Down Payment Contract

Down Payment Contract Template for Switzerland

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Down Payment Contract

"I need a Down Payment Contract for the purchase of industrial machinery worth CHF 500,000, with a 30% down payment required by March 2025 and the balance payable in two installments; the contract should include inspection rights and performance guarantees."

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Document background
The Down Payment Contract is a crucial legal instrument used in Switzerland when a buyer needs to make an advance payment for goods, services, or property. This document is particularly important for high-value transactions where sellers require financial security before proceeding with the full transaction. The contract is structured to comply with Swiss legal requirements, particularly the Swiss Code of Obligations (OR) and relevant consumer protection laws. It specifies the down payment amount, conditions for payment and refund, delivery terms, and consequences of default. This type of agreement is commonly used in real estate transactions, equipment purchases, and other significant commercial dealings where staged payments are necessary. The document provides legal protection for both parties by clearly defining their rights and obligations under Swiss law.
Suggested Sections

1. Parties: Identification and details of the seller and purchaser, including full legal names, addresses, and any registration numbers

2. Background: Context of the transaction, including brief description of the subject matter and purpose of the down payment arrangement

3. Definitions: Key terms used throughout the agreement, including 'Down Payment', 'Purchase Price', 'Delivery Date', etc.

4. Subject Matter: Detailed description of the goods or services being purchased

5. Purchase Price and Payment Terms: Total purchase price, down payment amount, payment schedule, and payment methods

6. Down Payment Conditions: Specific terms regarding the down payment, including when it becomes non-refundable

7. Delivery Terms: Timing and conditions for delivery of goods or services after down payment

8. Default and Remedies: Consequences of default by either party and available remedies

9. Governing Law and Jurisdiction: Confirmation of Swiss law application and jurisdiction for disputes

Optional Sections

1. Security Provisions: Used when additional security is required for the balance payment

2. Insurance Requirements: Included when the subject matter requires insurance during the payment period

3. Inspection Rights: Added for transactions involving goods that require inspection before final payment

4. Force Majeure: Included for longer-term arrangements where external factors might affect performance

5. Assignment Rights: Used when either party might need to transfer their rights or obligations

6. Warranty Terms: Included when specific warranties are offered beyond statutory requirements

7. Cancellation Rights: Added for consumer contracts or when specific cancellation terms are negotiated

Suggested Schedules

1. Schedule 1 - Description of Goods/Services: Detailed technical specifications or description of services

2. Schedule 2 - Payment Schedule: Detailed breakdown of payment installments, dates, and amounts

3. Schedule 3 - Delivery Schedule: Timeline and specifications for delivery or performance

4. Appendix A - Required Documents: List of documents required from either party (e.g., proof of identity, licenses)

Authors

Alex Denne

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

alex.den.21@genieai.co
Relevant legal definitions

































Clauses




























Relevant Industries

Real Estate

Manufacturing

Retail

Automotive

Construction

Industrial Equipment

Luxury Goods

Technology

Heavy Machinery

Consumer Goods

Relevant Teams

Legal

Sales

Procurement

Finance

Commercial

Operations

Compliance

Risk Management

Project Management

Business Development

Relevant Roles

Legal Counsel

Contract Manager

Sales Manager

Procurement Manager

Business Development Manager

Finance Director

Commercial Director

Real Estate Agent

Sales Director

Operations Manager

Chief Financial Officer

Compliance Officer

Risk Manager

Project 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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