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The Sales Agreement With Payment Plan is essential for transactions in the Philippines where buyers require flexible payment terms for significant purchases. This document is commonly used in both business-to-business and business-to-consumer contexts, particularly for high-value items such as equipment, vehicles, or bulk purchases. It must comply with Philippine law, including the Civil Code, Consumer Act, and Truth in Lending Act, which govern installment sales and consumer protection. The agreement typically includes detailed payment schedules, interest calculations following Central Bank guidelines, warranty terms, and remedies for default. It's particularly important in sectors where financing options are crucial for closing sales, and it provides legal protection for both sellers and buyers throughout the duration of the payment plan.

1. Parties: Identifies and provides full details of the Seller and Buyer, including their legal names, addresses, and registration details if applicable

2. Background: Contextual information about the transaction and the parties' intention to enter into a sale with payment plan arrangement

3. Definitions: Defines key terms used throughout the agreement for clarity and consistency

4. Sale of Goods: Describes the items being sold, including specifications, quantity, and condition

5. Purchase Price: States the total purchase price and breaks down any applicable taxes or additional charges

6. Payment Terms: Details the payment plan structure, including down payment, installment amounts, payment schedule, and payment methods

7. Interest and Late Payment Charges: Specifies interest rates, late payment penalties, and computation method in compliance with Philippine law

8. Delivery and Transfer of Ownership: Outlines delivery terms and when ownership transfers to the buyer

9. Warranties and Representations: States the seller's warranties regarding the goods and both parties' general representations

10. Default and Remedies: Describes what constitutes default and the available remedies for both parties

11. Termination: Specifies conditions for termination and its consequences

12. Governing Law and Jurisdiction: Establishes Philippine law as governing law and specifies jurisdiction for disputes

13. Notices: Details how formal communications between parties should be made

14. General Provisions: Standard boilerplate clauses including severability, entire agreement, and amendments