This document is essential for businesses operating in Germany that offer goods for sale with payment in installments. The Installment Sales Contract (Ratenkaufvertrag) must comply with strict German regulatory requirements, particularly when dealing with consumers. It is commonly used in both B2B and B2C transactions where immediate full payment is not required or desired. The agreement must include specific elements required by German law, such as detailed payment terms, precise product descriptions, withdrawal rights for consumers, and clear interest rate calculations. The document should be structured to comply with the German Civil Code (BGB) and related consumer protection legislation, while also addressing practical aspects of the installment sale relationship.

1. Parties: Identification of seller and buyer with full legal names, addresses, and registration details if applicable

2. Background: Brief context of the sale and purpose of the installment arrangement

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

4. Object of Sale: Detailed description of the goods being sold, including specifications and condition

5. Purchase Price and Payment Terms: Total purchase price, down payment, number of installments, installment amounts, payment dates, and annual percentage rate

6. Delivery and Transfer of Title: Delivery terms, retention of title until full payment, and risk transfer provisions

7. Rights and Obligations: Core responsibilities of both parties, including maintenance and usage restrictions

8. Default and Consequences: Conditions constituting default, acceleration clauses, and consequences of missed payments

9. Warranty and Liability: Warranty terms, liability limitations, and claim procedures

10. Right of Withdrawal: Mandatory consumer right of withdrawal (Widerrufsrecht) and its exercise procedure

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