Document background
The Installment Agreement is a crucial document used in Malaysian commercial transactions where goods or services are purchased through structured periodic payments rather than a single lump sum. This document is essential for businesses offering payment plans to customers or in B2B transactions involving significant purchases. The agreement must comply with Malaysian legislation, including the Contracts Act 1950, Hire Purchase Act 1967, and Consumer Protection Act 1999. It typically includes detailed payment terms, interest calculations, security arrangements, and default provisions. The document is particularly important in sectors where high-value items are sold, such as automotive, machinery, or expensive consumer goods, and provides legal protection for both the seller's right to receive payment and the buyer's right to obtain clear title upon completion of payments.
