Document background
This Prepayment Agreement template is designed for use under Dutch law when one party needs to make advance payments to another for future delivery of goods or services. The document is particularly relevant in commercial transactions where significant upfront payments are required, such as large-scale manufacturing, construction projects, or bulk purchase arrangements. A Prepayment Agreement typically includes detailed provisions on payment terms, security measures, performance obligations, and risk allocation, all aligned with Dutch legal requirements and business practices. It incorporates safeguards to protect the paying party's interests while ensuring compliance with Dutch financial regulations and the Civil Code. The agreement is adaptable for various business contexts, from simple bilateral arrangements to complex multi-party transactions involving banks or security trustees.
