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Prepayment Agreement
"I need a Prepayment Agreement under Belgian law for a manufacturing contract where we (as buyer) will pay 40% upfront for custom industrial equipment, with bank guarantee requirements and delivery scheduled for March 2025."
1. Parties: Identification and details of the parties to the agreement
2. Background: Context of the agreement and commercial rationale for the prepayment arrangement
3. Definitions: Definitions of key terms used throughout the agreement
4. Prepayment Amount and Terms: Specification of the prepayment amount, payment schedule, and related conditions
5. Purpose of Prepayment: Description of goods/services for which prepayment is being made
6. Delivery or Performance Obligations: Timing and conditions for delivery of goods/services against the prepayment
7. Use of Prepaid Funds: Restrictions and obligations regarding the use of prepaid amounts
8. Accounting and Records: Requirements for maintaining records of prepayments and their application
9. Representations and Warranties: Standard and specific warranties regarding the parties' capacity and the transaction
10. Term and Termination: Duration of the agreement and circumstances allowing early termination
11. Consequences of Default: Rights and remedies in case of breach or default
12. General Provisions: Standard boilerplate clauses including notices, amendments, governing law
1. Security Arrangements: Details of any security provided for the prepayment - include if security is being provided
2. Bank Guarantee: Terms of any bank guarantee securing the prepayment - include if a bank guarantee is part of the arrangement
3. Interest on Prepayment: Terms for any interest payable on the prepaid amount - include if interest is to be paid
4. VAT and Tax Provisions: Detailed tax treatment of prepayments - include for significant amounts or complex arrangements
5. Currency and Exchange Provisions: Include for cross-border transactions involving different currencies
6. Parent Company Guarantee: Terms of parent company support - include if parent company backing is required
7. Consumer Protection Provisions: Additional protective clauses - include if one party is a consumer
8. Regulatory Compliance: Specific compliance obligations - include if the transaction falls under specific regulatory requirements
1. Schedule 1 - Payment Schedule: Detailed schedule of prepayment installments and timing
2. Schedule 2 - Goods/Services Specification: Detailed description of goods/services covered by the prepayment
3. Schedule 3 - Form of Payment Request: Template for requesting installments of the prepayment
4. Schedule 4 - Form of Receipt: Template for acknowledging receipt of prepayment installments
5. Schedule 5 - Security Documents: Forms of any security documents (if applicable)
6. Appendix A - Calculation of Interest: Methodology for calculating any applicable interest
7. Appendix B - Contact Details: List of key contacts and notice details for both parties
Authors
Advance Payment
Bank Guarantee
Business Day
Completion Date
Confidential Information
Contract Price
Delivery Date
Delivery Schedule
Effective Date
Event of Default
Force Majeure
Goods
Governmental Authority
Interest Rate
Law
Material Adverse Change
Payment Schedule
Prepayment Amount
Prepayment Date
Prepayment Period
Purchase Order
Recipient
Security
Security Documents
Services
Specifications
Supplier
Term
Termination Date
VAT
Working Day
Conditions Precedent
Representations and Warranties
Security
Bank Guarantee
Delivery Obligations
Performance Requirements
Interest
Default
Force Majeure
Termination
Set-Off
Assignment
Confidentiality
Notices
Amendments
Entire Agreement
Severability
Waiver
Governing Law
Jurisdiction
Dispute Resolution
Indemnification
VAT and Taxation
Record Keeping
Audit Rights
Anti-Money Laundering
Regulatory Compliance
Currency and Exchange
Parent Company Guarantee
Insurance
Liability
Third Party Rights
Counterparts
Manufacturing
Construction
Engineering
Retail
Technology Services
Professional Services
Energy
Infrastructure
Real Estate Development
Industrial Equipment
Automotive
Aerospace
Legal
Finance
Procurement
Treasury
Commercial
Risk Management
Accounts Payable
Supply Chain
Project Management
Credit Control
Chief Financial Officer
Finance Director
Procurement Manager
Commercial Director
Contract Manager
Legal Counsel
Treasury Manager
Financial Controller
Supply Chain Manager
Project Manager
Risk Manager
Accounts Payable Manager
Credit Controller
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