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Down Payment Contract Template for Netherlands

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Down Payment Contract

"I need a Down Payment Contract for selling custom-made industrial machinery worth €500,000, where the buyer will pay 30% upfront, with delivery scheduled for March 2025; it must include quality inspection terms and force majeure provisions."

Document background
The Down Payment Contract serves as a crucial legal instrument in transactions requiring advance partial payment before the delivery of goods or services. This document type is commonly used in the Netherlands across various sectors, particularly in high-value purchases, custom-made products, or situations requiring financial commitment from buyers. It provides legal protection under Dutch law for both parties by clearly defining payment terms, delivery obligations, and refund conditions. The contract must comply with the Dutch Civil Code (Burgerlijk Wetboek), consumer protection laws if applicable, and anti-money laundering regulations for significant payments. It's especially relevant in scenarios where sellers need financial security before commencing work or securing inventory, while also protecting buyers' interests through clearly defined terms and conditions for the down payment and subsequent transaction completion.
Suggested Sections

1. Parties: Identification of all parties involved in the down payment agreement, including full legal names, addresses, and registration numbers if applicable

2. Background: Context of the transaction, describing the main purchase and reason for the down payment arrangement

3. Definitions: Key terms used throughout the agreement, including 'Down Payment', 'Purchase Price', 'Delivery Date', etc.

4. Down Payment Amount and Terms: Specific amount of down payment, payment method, and due date

5. Main Purchase Details: Description of the goods/services being purchased, total purchase price, and delivery terms

6. Payment Schedule: Breakdown of remaining payments after the down payment

7. Security and Title: Provisions regarding ownership rights and any security interests until full payment

8. Cancellation and Refund: Terms for contract cancellation and conditions for down payment refund

9. Default and Remedies: Consequences of payment default and available remedies

10. Governing Law and Jurisdiction: Specification of Dutch law as governing law and jurisdiction for disputes

Optional Sections

1. Consumer Protection Rights: Required when one party is a consumer, outlining statutory rights under Dutch and EU consumer protection laws

2. Delivery Instructions: Include when the agreement involves physical goods requiring specific delivery arrangements

3. Quality and Inspection: Add when the agreement involves goods that require quality checks or inspection before full payment

4. Force Majeure: Include for long-term delivery contracts or when significant delays might occur due to external factors

5. Insurance Requirements: Add when valuable goods are involved requiring specific insurance during the payment period

6. Anti-Money Laundering Compliance: Required for high-value transactions subject to Wwft regulations

Suggested Schedules

1. Payment Schedule: Detailed breakdown of all payment installments, dates, and amounts

2. Product Specifications: Detailed description of goods/services being purchased

3. Bank Details: Banking information for making payments

4. Required Documentation: List of documents required for compliance and verification purposes

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions




















Clauses




















Relevant Industries

Retail

Manufacturing

Real Estate

Construction

Automotive

Industrial Equipment

Luxury Goods

Technology

Furniture and Home Goods

Professional Services

Relevant Teams

Legal

Sales

Procurement

Finance

Operations

Compliance

Risk Management

Commercial

Customer Service

Contract Administration

Relevant Roles

Commercial Director

Sales Manager

Procurement Manager

Contract Administrator

Legal Counsel

Finance Manager

Business Development Manager

Account Executive

Operations Manager

Risk Manager

Compliance Officer

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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