"Installment Sales Contract Template"

What Is an Installment Sales Contract?

An Installment Sales Contract is a contract in which a buyer takes possession of the property immediately but does not receive the deed and title until a series of payments (installments) have been made. The contract is used in cases where a buyer purchases good on an installment basis. For example, it is used in cases such as buying a car, a motor vehicle, real estate, or with other expensive items.

An Installment Sales Contract in retail, specifically, is a contract in which a buyer agrees to pay a seller for an item in installments, along with a financial charge or with the provision that the ultimate price will be higher than if the buyer had paid the full price initially. It's an agreement between a customer and a dealer, but not with a bank.

You can download our Installment Sales Contract template through the link below or create your own document with our online form-builder.

ADVERTISEMENT

How to Write an Installment Sales Contract?

What sections does the standard Installment Sales Contract contain?

  1. Information about the parties: a seller and a buyer, the property for sale.
  2. Payments details, including the amount of the purchase price, the interest payments, and the rate of interest.
  3. An installment plan. This plan determines the time frame of each installment payment and how the interest charges will be accrued during each installment period.
  4. Warranties. A clause containing any warranties may be included in the agreement. The warranties are any representations or statements made by the seller regarding the quality or value of the goods.
  5. Insurance. The seller may require the buyer to purchase and maintain insurance for the goods until the full amount of the installment payments have been paid.
  6. Default. This section includes what constitutes a default by the buyer and the seller's right to reclaim the property.
  7. Signatures of the parties.

Related Forms and Templates:

  • You can use our basic Sales Contract Template in cases where a purchase or sales transaction is made without installment;
  • Not the form you were looking for? Check out our library of printable Service Contracts.
ADVERTISEMENT

Download "Installment Sales Contract Template"

Download PDF

Create Document

Rate (4.6 / 5) 23 votes
Installment Sales Contract
This ​ I nstallment Sales Contract (hereinafter referred to as the “Agreement”) is
entered into as of _______________ by and between __________________________
with a mailing address of ________________________________________________
_____________________________________________________________________
(hereinafter referred to as the “Seller”) and __________________________________,
with a mailing address of ________________________________________________
_____________________________________________________________________
(hereinafter referred to as the “Buyer”), collectively referred to as the “Parties”, both
of whom agree to be bound by this Agreement.
BACKGROUND:
The Seller is the ___________________ of the following product(s):
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
(hereinafter referred to as the “Goods”). The Buyer wishes to purchase the
aforementioned product(s).
THEREFORE, the Parties agree as follows:
1. Sale of Goods. The Seller shall make available for sale and the Buyer shall
purchase the Goods.
2. Delivery and Shipping.
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
3. Purchase Price and Payments. The Seller agrees to sell the Goods to the Buyer
for $__________________ upon the terms set forth below.
Deposit Paid: $__________________ Outstanding Balance: $__________________
Installment Sales Contract
This ​ I nstallment Sales Contract (hereinafter referred to as the “Agreement”) is
entered into as of _______________ by and between __________________________
with a mailing address of ________________________________________________
_____________________________________________________________________
(hereinafter referred to as the “Seller”) and __________________________________,
with a mailing address of ________________________________________________
_____________________________________________________________________
(hereinafter referred to as the “Buyer”), collectively referred to as the “Parties”, both
of whom agree to be bound by this Agreement.
BACKGROUND:
The Seller is the ___________________ of the following product(s):
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
(hereinafter referred to as the “Goods”). The Buyer wishes to purchase the
aforementioned product(s).
THEREFORE, the Parties agree as follows:
1. Sale of Goods. The Seller shall make available for sale and the Buyer shall
purchase the Goods.
2. Delivery and Shipping.
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
3. Purchase Price and Payments. The Seller agrees to sell the Goods to the Buyer
for $__________________ upon the terms set forth below.
Deposit Paid: $__________________ Outstanding Balance: $__________________
Interest Charges. Interest shall accrue at the rate of _____% per year on any unpaid
balance.
Late Payment Fees. ​ I f payment is not made within _____ days, the Buyer shall pay
an additional late payment fee in the amount of $__________________. The Buyer
will pay to the Seller _____ payments of $__________________ each at uninterrupted
monthly intervals on the _____ day of each month, starting on the _____ day of
___________________ until the Outstanding Balance and accrued interest is paid in
full. All payments shall first be applied to outstanding late payment fees, then to
accrued interest and thereafter to the Outstanding Balance.
If the Buyer fails to make any payment when due for whatever reason and the Seller
provides notice of such failure, the Buyer must effect payment of the amount due
within ____ days, failing which the Seller can demand immediate payment of the
entire outstanding balance and accrued interest.
4. Inspection of Goods and Rejection. The Buyer is entitled to inspect the Goods
upon delivery or pick-up. If the Goods are unacceptable for any reason, the Buyer
must reject them at the time of pick-up or within __________________
b usiness days
from the date of delivery. If Buyer has not rejected the Goods within
__________________ business days from the date of delivery, the Buyer shall have
waived any right to reject that specific delivery of Goods/.
In the event that the Buyer rejects the Goods, the Buyer shall allow the Seller a
reasonable time to cure the deficiency. A reasonable time period shall be determined
by industry standards for the particular Goods, as well as the Seller and Buyer.
5. Risk of Loss. ​ T he risk of loss will be on the Seller until the time when the Buyer
accepts delivery or picks up the goods. The Seller shall maintain any and all necessary
insurance in order to insure the Goods against loss at the Seller’s own expense.
6. Title. ​ T itle to the Goods will remain with the Seller until the Buyer accepts delivery
or picks up the goods.
7. Excuse for Delay or Failure to Perform. The Seller will not be liable to the Buyer
for any delay, non-delivery or default of this Agreement due to labor disputes,
transportation shortage, delay or shortage of materials to produce the Goods, fires,
accidents, Acts of God, or any other causes outside of the Seller’s control. The Seller
shall notify the Buyer immediately upon realization that it will not be able to deliver
the Goods as promised. Either Party may terminate this Agreement upon such notice.
8. Termination. ​ T his Agreement may be terminated at any time by either Party upon
written notice to the other Party. The Buyer will be responsible for payment of all
Goods delivered and accepted up to the date of termination.
9. Disclaimer of warranties. ​ T he goods are sold “as is”. Seller expressly disclaims all
warranties, whether express or implied, including, but not limited to, any implied
warranty of merchantability or fitness for a particular purpose.
10. Limitation of liability. ​ U nder no circumstances shall either Party be liable to the
other Party or any third party for any damages resulting from any part of this
agreement such as, but not limited to, loss of revenue or anticipated profit or lost
business, costs of delay or failure of delivery, which are not related to or the direct
result of a Party’s negligence or breach.
11. Severability. In the event any provision of this Agreement is deemed invalid or
unenforceable, in whole or in part, that part shall be severed from the remainder of the
Agreement and all other provisions should continue in full force and effect as valid
and enforceable.
12. Waiver. The failure by either Party to exercise any right, power or privilege under
the terms of this Agreement will not be construed as a waiver of any subsequent or
further exercise of that right, power or privilege or the exercise of any other right,
power or privilege.
13. Remedies and Legal Fees. In the event of a dispute, the Buyer’s sole remedy for
any and all losses or damages resulting from defective Goods or from any other cause
will be for the purchase price of the particular Goods with respect to which losses or
damages are claimed, plus any shipping costs paid by the Buyer. In the event such
dispute results in legal action, the successful Party will be entitled to its legal fees,
including, but not limited to its attorneys’ fees.
14. Legal and Binding Agreement. ​ T his Agreement is legal and binding between the
Parties as stated above. The Parties each represent that they have the authority to enter
into this Agreement.
15. Governing Law and Jurisdiction. The Parties agree that this Agreement shall be
governed by the State in which both Parties do business. In the event that the Parties
do business in different States, this Agreement shall be governed by
__________________________ law​ .
State
16. Entire Agreement. ​ T he Parties acknowledge and agree that this Agreement
represents the entire agreement between the Parties. In the event that the Parties desire
to change, add, or otherwise modify any terms, they shall do so in writing to be signed
by both parties.
The Parties agree to the terms and conditions set forth above as demonstrated by their
signatures as follows:
SELLER
BUYER
Name: ​ _ ____________________
Name: ​ _ ____________________
Signed: ​ _ ___________________
Signed: ​ _ ___________________
Date: ______________________
Date: ______________________
Page of 4