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Installment Sale Agreement Template for India

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Key Requirements PROMPT example:

Installment Sale Agreement

"I need an Installment Sale Agreement for selling industrial machinery worth INR 50 lakhs to a manufacturing company in Mumbai, with monthly installments spread over 24 months starting March 2025, including provisions for maintenance requirements and equipment insurance."

Document background
The Installment Sale Agreement is a crucial document in Indian commercial practice, particularly used when valuable goods or property are sold with payments spread over time. It finds application across various sectors from automotive to real estate, providing a structured framework for deferred payment purchases. This agreement type is governed by multiple Indian laws including the Indian Contract Act 1872 and Sale of Goods Act 1930, requiring careful consideration of statutory compliance. The document typically includes detailed payment schedules, interest calculations, security arrangements, and risk allocation between parties. It's especially relevant in both B2B and B2C contexts where financing through installments is preferred over immediate full payment, offering businesses a way to facilitate sales while maintaining security over the sold items until full payment is received.
Suggested Sections

1. Parties: Identification and details of the seller and purchaser

2. Background: Context of the transaction and brief description of the goods/property being sold

3. Definitions and Interpretation: Definitions of key terms used in the agreement and rules of interpretation

4. Sale and Purchase: Core agreement to sell and purchase, including description of goods/property

5. Purchase Price: Total purchase price, down payment, and installment structure

6. Payment Terms: Detailed terms of installment payments including dates, amounts, and payment methods

7. Interest: Interest rate applicable to installments and calculation method

8. Delivery and Transfer of Title: Terms for delivery of goods/property and when title passes to purchaser

9. Security Interest: Seller's security interest in the goods/property until full payment

10. Default and Remedies: Events of default and available remedies including repossession rights

11. Representations and Warranties: Standard representations and warranties from both parties

12. Insurance and Maintenance: Requirements for insurance and maintaining the goods/property

13. Notices: Process and requirements for giving formal notices under the agreement

14. Governing Law and Jurisdiction: Specification of Indian law as governing law and jurisdiction for disputes

15. General Provisions: Standard boilerplate provisions including amendment, waiver, and severability

Optional Sections

1. Condition Precedent: Used when certain conditions must be met before the agreement becomes effective

2. Co-signers/Guarantors: Include when there are additional parties guaranteeing the purchaser's obligations

3. Prepayment Provisions: Include when early payment options are allowed, including any penalties or discounts

4. Tax Provisions: Detailed section needed when tax implications are complex or need specific allocation

5. Registration Requirements: Include for agreements requiring registration under Indian law

6. Assignment: Include when either party needs the right to assign their rights or obligations

7. Force Majeure: Include when specific events beyond parties' control need to be addressed

8. Arbitration: Include when parties prefer arbitration over court litigation for dispute resolution

Suggested Schedules

1. Schedule 1 - Description of Goods/Property: Detailed technical or legal description of the items being sold

2. Schedule 2 - Payment Schedule: Detailed breakdown of all installment payments including dates and amounts

3. Schedule 3 - Delivery Schedule: If applicable, detailed timeline and terms for delivery of goods

4. Schedule 4 - Condition Report: For used goods, detailed description of condition at time of sale

5. Schedule 5 - Insurance Requirements: Detailed specifications of required insurance coverage

6. Schedule 6 - Maintenance Requirements: Detailed maintenance obligations for the goods/property

7. Appendix A - Forms: Standard forms for notices, payment receipts, or other required documentation

8. Appendix B - Required Documents: List of documents required from parties such as ID proofs, registrations

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











































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Relevant Industries

Automotive

Real Estate

Industrial Equipment

Manufacturing

Consumer Durables

Construction

Agriculture

Technology

Heavy Machinery

Retail

Medical Equipment

Transportation

Relevant Teams

Legal

Finance

Sales

Credit Control

Risk Management

Operations

Compliance

Commercial

Business Development

Collections

Contract Administration

Relevant Roles

Sales Manager

Legal Counsel

Finance Director

Credit Manager

Commercial Director

Business Development Manager

Contracts Administrator

Risk Manager

Collections Manager

Operations Manager

Compliance Officer

Chief Financial Officer

General Counsel

Sales Director

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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