Document background
The Installment Sale Contract is primarily used when parties wish to arrange the purchase of goods through periodic payments rather than a single lump sum. This document type is particularly common in both B2C and B2B contexts under German law, where it must comply with specific provisions of the German Civil Code (BGB), especially §§ 433-435 for sales contracts and §§ 488-507 for credit arrangements. The contract includes essential elements such as detailed product specifications, payment schedules, interest calculations, and, for consumer contracts, mandatory withdrawal rights. It's especially relevant when selling high-value items like vehicles, machinery, or expensive consumer goods where buyers prefer or require payment flexibility. The document must incorporate specific consumer protection elements when used in B2C transactions, including clear price information as required by the Price Indication Regulation (PAngV) and proper disclosure of the effective annual interest rate.
