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The Deferred Payment Agreement is used when one party wishes to purchase goods or services but requires extended payment terms. This document is particularly relevant in commercial transactions where immediate full payment is not feasible or desirable. Under German law, such agreements must comply with specific requirements regarding interest rates, payment terms, and consumer protection (where applicable). The agreement typically includes detailed payment schedules, interest calculations, default provisions, and enforcement mechanisms. It's commonly used in various business contexts, from large commercial transactions to consumer purchases, and must be structured to comply with both the German Civil Code (BGB) and, where relevant, the German Commercial Code (HGB). The document provides security for the seller while offering payment flexibility to the buyer.

1. Parties: Identification and details of the parties entering into the agreement

2. Background: Context of the agreement, including the underlying transaction or reason for the deferred payment

3. Definitions: Key terms used throughout the agreement

4. Payment Terms: Detailed description of the principal amount, payment schedule, and installment amounts

5. Interest Calculation: Method of calculating interest, including applicable rates and computation periods

6. Payment Mechanics: Specific details about how payments will be made, including bank account details and payment methods

7. Default and Late Payment: Consequences of missed payments, including default interest and enforcement rights

8. Representations and Warranties: Standard declarations by both parties about their capacity and authority to enter into the agreement

9. Security: Any security arrangements securing the payment obligations

10. Notices: How formal communications between parties should be made

11. Governing Law and Jurisdiction: Confirmation of German law application and jurisdiction for disputes

12. Entire Agreement: Standard boilerplate confirming this document represents the complete agreement