Incidental Credit Agreement Generator for Germany

The Incidental Credit Agreement is utilized when credit is provided in connection with a specific purchase or transaction, rather than as a standalone credit facility. This document type is common in German retail and financial services sectors, where customers require financing for specific purchases. The agreement must comply with German Civil Code (BGB) requirements, particularly regarding consumer protection, transparency in financial terms, and withdrawal rights. It includes essential information about credit amounts, interest rates, repayment terms, and the connection to the main transaction. The document serves both commercial purposes and regulatory compliance, ensuring that both credit provider and borrower understand their rights and obligations under German law.

1. Parties: Identification of the credit provider and the borrower with full legal names and addresses

2. Background: Context of the incidental credit agreement, including reference to the main transaction it relates to

3. Definitions: Key terms used throughout the agreement, including financial and technical terms

4. Credit Amount and Purpose: Specification of the credit amount and its intended use in relation to the main transaction

5. Interest Rate and Charges: Detailed specification of interest rates, APR, and all applicable charges

6. Repayment Terms: Schedule and method of repayment, including payment dates and amounts

7. Pre-contractual Information: Confirmation of provided pre-contractual information as required by German law

8. Right of Withdrawal: Information about the borrower's right of withdrawal (Widerrufsrecht) and its conditions

9. Default and Consequences: Provisions regarding default, late payment, and resulting consequences

10. Term and Termination: Duration of the agreement and conditions for termination

11. Governing Law and Jurisdiction: Specification of German law as governing law and jurisdiction