Financed Sales Contract Template for India

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Key Requirements PROMPT example:

Financed Sales Contract

"I need a Financed Sales Contract for the purchase of manufacturing equipment worth INR 50 lakhs from ABC Industries Ltd, with financing over 36 months and a 20% down payment, including specific maintenance requirements and quarterly inspection rights."

Document background
The Financed Sales Contract is essential for transactions where buyers require financing to purchase significant assets or equipment. This document type is commonly used in India across various industries, particularly for high-value purchases such as industrial machinery, vehicles, or commercial equipment. It provides a legal framework that protects both the seller's interest in receiving payment and the buyer's interest in acquiring the asset through structured financing. The contract must comply with Indian contract law, including the Indian Contract Act 1872, Sale of Goods Act 1930, and relevant financial regulations. It typically includes detailed terms about the asset being sold, financing arrangements, security interests, repayment schedules, and default provisions. This type of agreement is particularly valuable when businesses or individuals need to acquire assets but prefer or require spread-out payments over time rather than a single lump-sum payment.
Suggested Sections

1. Parties: Identification of seller, buyer, and financing party (if separate from seller)

2. Background: Context of the transaction, including the intent to sell with financing arrangements

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

4. Sale and Purchase: Core terms of the sale including description of goods/property and purchase price

5. Financing Terms: Detail of the financing arrangement including principal amount, interest rate, repayment schedule

6. Payment Terms: Structure of payments, including down payment, installments, and payment methods

7. Delivery and Acceptance: Terms regarding delivery, inspection, and acceptance of goods

8. Title and Risk: When and how title passes, retention of title provisions, risk allocation

9. Security Interest: Details of any security interest retained in the goods

10. Representations and Warranties: Standard and specific warranties from both parties

11. Events of Default: Circumstances constituting default and consequences

12. Remedies: Rights and remedies of parties in case of breach or default

13. General Terms: Standard boilerplate provisions including notices, amendments, governing law

Optional Sections

1. Insurance: Required when goods need specific insurance coverage during financing period

2. Maintenance and Use: Include when goods require specific maintenance standards during financing period

3. Registration: Required when goods need formal registration (e.g., vehicles)

4. Third-Party Rights: Include when financing is provided by a third-party lender

5. Early Repayment: Include when early repayment options are offered

6. Assignment: Include when rights under the contract may be assigned

7. Force Majeure: Include for long-term financing arrangements or high-value goods

Suggested Schedules

1. Schedule 1 - Description of Goods: Detailed specification of goods being sold

2. Schedule 2 - Payment Schedule: Detailed repayment schedule including dates and amounts

3. Schedule 3 - Delivery Schedule: If delivery is in installments or requires specific timing

4. Schedule 4 - Interest Calculation: Method and examples of interest calculation

5. Schedule 5 - Security Details: Details of any security interest or collateral

6. Appendix A - Condition Report: For used goods, documenting condition at time of sale

7. Appendix B - Maintenance Requirements: If specific maintenance is required during financing period

8. Appendix C - Insurance Requirements: Specific insurance requirements and terms

Authors

Alex Denne

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

Relevant legal definitions
Relevant Industries

Manufacturing

Automotive

Heavy Equipment

Industrial Machinery

Construction

Agriculture

Technology Hardware

Commercial Real Estate

Retail

Healthcare Equipment

Renewable Energy

Relevant Teams

Legal

Finance

Sales

Credit

Commercial

Risk Management

Contract Administration

Business Development

Operations

Procurement

Relevant Roles

Legal Counsel

Finance Manager

Sales Director

Credit Manager

Commercial Director

Risk Manager

Contract Administrator

Business Development Manager

Financial Controller

Operations Manager

Procurement Manager

Asset Manager

Chief Financial Officer

General Counsel

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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