Installment Sales Contract for Malaysia

Installment Sales Contract Template for Malaysia

This document is a comprehensive installment sales agreement governed by Malaysian law, particularly the Hire-Purchase Act 1967 and related legislation. It establishes the terms and conditions for the sale of goods where the purchase price is paid in installments over time, while the seller retains title to the goods until full payment is made. The agreement includes detailed provisions for payment terms, delivery, warranties, default remedies, and termination rights, ensuring compliance with Malaysian consumer protection and contract laws while protecting both parties' interests throughout the duration of the installment payment period.

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What is a Installment Sales Contract?

The Installment Sales Contract is essential for businesses operating in Malaysia that offer goods for purchase through installment payments. This document type is commonly used when customers require flexible payment terms for significant purchases, from vehicles to industrial equipment. The agreement must comply with Malaysian legislation, particularly the Hire-Purchase Act 1967, the Contracts Act 1950, and consumer protection laws. It typically includes comprehensive details about the goods being sold, payment schedule, interest rates, default provisions, and security arrangements. The document protects both seller and buyer by clearly defining rights, obligations, and remedies throughout the installment period, while ensuring all regulatory requirements are met.

What sections should be included in a Installment Sales Contract?

1. Parties: Identification and details of the seller and purchaser

2. Background: Context of the transaction and purpose of the agreement

3. Definitions: Definitions of key terms used throughout the agreement

4. Sale and Purchase: Description of goods being sold and purchased

5. Purchase Price: Total purchase price and breakdown of costs

6. Payment Terms: Installment amount, frequency, and duration of payments

7. Delivery and Acceptance: Terms regarding delivery of goods and acceptance procedures

8. Title and Risk: Transfer of ownership and risk in the goods

9. Warranties and Representations: Warranties regarding the condition and quality of goods

10. Default and Remedies: Consequences of default and available remedies

11. Termination: Circumstances and procedures for contract termination

12. Governing Law: Specification of Malaysian law as governing law

13. Notices: Method and addresses for formal communications

14. Execution: Signature blocks and execution formalities

What sections are optional to include in a Installment Sales Contract?

1. Insurance: Required when goods need specific insurance coverage

2. Security Interest: Used when additional security is required for the purchase

3. Maintenance and Repairs: Included for goods requiring ongoing maintenance

4. Assignment: When rights under the contract may need to be transferred

5. Force Majeure: For protection against unforeseen circumstances

6. Dispute Resolution: When specific dispute resolution procedures are desired

7. Third Party Rights: When third parties may have rights under the contract

What schedules should be included in a Installment Sales Contract?

1. Schedule 1 - Description of Goods: Detailed specifications and description of the goods

2. Schedule 2 - Payment Schedule: Detailed breakdown of installment payments and due dates

3. Schedule 3 - Delivery Details: Specific delivery instructions and requirements

4. Schedule 4 - Warranty Terms: Detailed warranty terms and conditions

5. Appendix A - Condition Report: Initial condition report of goods (if applicable)

6. Appendix B - Required Insurance: Insurance requirements and specifications

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Malaysia

Publisher

Genie AI

Document Type

Sale Agreement

Cost

Free to use
Relevant Industries

Retail

Automotive

Consumer Electronics

Industrial Equipment

Furniture and Home Furnishings

Construction Equipment

Agricultural Equipment

Medical Equipment

Office Equipment

Manufacturing

Relevant Teams

Legal

Finance

Sales

Credit Control

Operations

Compliance

Risk Management

Commercial

Business Development

Collections

Relevant Roles

Sales Manager

Finance Manager

Legal Counsel

Credit Controller

Commercial Director

Contracts Administrator

Risk Manager

Compliance Officer

Business Development Manager

Operations Manager

Chief Financial Officer

Account Executive

Collections Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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