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The Installment Agreement is a vital document used when parties wish to structure payment obligations over time, commonly utilized in both B2C and B2B contexts under German law. It's particularly relevant when customers require flexible payment terms for significant purchases or when businesses need to establish structured payment plans. The agreement must comply with the German Civil Code (BGB), especially regarding loan contracts and installment payments (§§ 488-505), and incorporate strong consumer protection elements when used in consumer transactions. This document includes essential details such as payment schedule, interest calculations, default provisions, and mandatory consumer rights information. The agreement's format and content are specifically designed to meet German legal requirements while providing clear, enforceable payment terms that protect both creditor and debtor interests.

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

2. Background: Context of the agreement, including the underlying transaction or reason for the installment payment arrangement

3. Definitions: Key terms used throughout the agreement, including payment-related terminology

4. Purchase Price and Payment Terms: Total amount owed, number of installments, amount of each installment, and payment schedule

5. Payment Method: Specified method(s) of payment, bank account details, and any direct debit arrangements

6. Interest and Additional Costs: Interest rate, calculation method, and any additional costs or fees, complying with PAngV requirements

7. Due Dates and Late Payment: Specific payment due dates and consequences of late payment, including default interest per BGB § 286-288

8. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

9. Default and Acceleration: Conditions constituting default and the creditor's right to demand immediate payment of the full amount

10. Consumer Rights: Mandatory consumer protection provisions, including right of withdrawal and information requirements

11. Final Provisions: Governing law, jurisdiction, written form requirement, and severability clause