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Deferred Payment Agreement for the Netherlands

Deferred Payment Agreement Template for Netherlands

A Deferred Payment Agreement under Dutch law is a legally binding contract that establishes a structured payment plan for an existing debt or obligation. The agreement details the terms under which a debtor will pay a creditor over an extended period, including specific payment schedules, interest calculations, and any applicable security arrangements. Governed by the Dutch Civil Code (Burgerlijk Wetboek) and related financial regulations, this agreement provides legal protection for both parties while establishing clear payment obligations, default provisions, and remedies. The document includes comprehensive terms for payment timing, methods, interest calculations, and may incorporate security arrangements or guarantees as additional protection for the creditor.

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What is a Deferred Payment Agreement?

The Deferred Payment Agreement is utilized when parties need to formalize arrangements for paying an existing debt over time, rather than through immediate payment. This document is particularly relevant in business transactions where a creditor agrees to accept payment of an outstanding amount through installments or at a future date. The agreement, governed by Dutch law, provides security for both parties by clearly documenting the payment terms, interest rates, and consequences of default. It's commonly used in various commercial contexts, from supplier-customer relationships to asset purchases, and can include additional security measures such as guarantees or collateral. The document must comply with Dutch civil law requirements and financial regulations, particularly regarding interest rates and payment terms. The agreement is essential for businesses managing cash flow and maintaining commercial relationships while ensuring legal protection for all parties involved.

What sections should be included in a Deferred Payment Agreement?

1. Parties: Identification of the creditor and debtor, including full legal names and addresses

2. Background: Context of the original debt or transaction and reason for the deferred payment arrangement

3. Definitions: Definitions of key terms used throughout the agreement

4. Original Debt Amount: Statement of the original amount owed and its origin

5. Payment Terms: Detailed payment schedule, including installment amounts and due dates

6. Interest: Interest rate applicable to the deferred payments and calculation method

7. Payment Method: Specified payment methods and account details for payments

8. Default Provisions: Consequences of missing payments and definition of events of default

9. Representations and Warranties: Standard declarations by both parties regarding their capacity and authority

10. Notices: How and where formal communications between parties should be sent

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

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

What sections are optional to include in a Deferred Payment Agreement?

1. Security Arrangements: Required if any collateral or guarantees are being provided to secure the debt

2. Early Payment Provisions: Include if early payment is permitted and if there are any associated discounts or penalties

3. Third Party Guarantor: Required if a third party is guaranteeing the payments

4. Assignment: Include if either party needs the right to assign the agreement to others

5. Force Majeure: Include for longer-term payment arrangements where external events might affect payment ability

6. Change of Circumstances: Include if specific provisions are needed for dealing with material changes in the debtor's financial situation

7. Tax Provisions: Required if there are specific tax implications that need to be addressed

8. Confidentiality: Include if the payment arrangement needs to remain confidential

What schedules should be included in a Deferred Payment Agreement?

1. Payment Schedule: Detailed breakdown of all payment dates and amounts

2. Interest Calculation: Detailed methodology for calculating interest on outstanding amounts

3. Security Details: If applicable, detailed description of any security or collateral provided

4. Original Debt Documentation: Copies or references to documents evidencing the original debt

5. Bank Account Details: Complete payment instructions and bank account information

6. Financial Covenants: If applicable, any financial metrics or ratios that must be maintained

Authors

Alex Denne

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

Jurisdiction

Netherlands

Publisher

Ƶ

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions

























Clauses






















Relevant Industries

Financial Services

Manufacturing

Retail

Construction

Real Estate

Professional Services

Technology

Healthcare

Energy

Agriculture

Transportation and Logistics

Wholesale Distribution

Relevant Teams

Legal

Finance

Treasury

Credit Control

Accounts Receivable

Risk Management

Commercial

Procurement

Corporate Development

Compliance

Relevant Roles

Chief Financial Officer

Finance Director

Credit Manager

Accounts Receivable Manager

Commercial Director

Legal Counsel

Contract Manager

Treasury Manager

Financial Controller

Risk Manager

Collections Manager

Business Development Manager

Procurement Manager

Corporate Lawyer

Debt Recovery Specialist

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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