Conditional Sale Agreement

Conditional Sale Agreement Template for Switzerland

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Key Requirements PROMPT example:

"I need a Conditional Sale Agreement under Swiss law for the sale of industrial manufacturing equipment worth CHF 500,000, with monthly installments over 24 months starting March 2025, including specific maintenance requirements and training provisions."

Document background

The Conditional Sale Agreement is a crucial document used in Swiss commercial transactions where goods are sold with payment structured in installments, while the seller maintains ownership until full payment is received. This arrangement is particularly common in high-value transactions and is governed by Swiss law, specifically the Swiss Code of Obligations and related regulations concerning title retention. The document is essential when businesses want to sell goods while maintaining security over them, or when buyers need flexible payment terms. The agreement must comply with Swiss registration requirements for title retention and includes detailed provisions on payment terms, delivery, maintenance obligations, and default remedies. It's particularly important to note that under Swiss law, a Conditional Sale Agreement must follow specific formalities to be enforceable, especially regarding the registration of the title retention arrangement.

Suggested Sections

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

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

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

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

5. Purchase Price and Payment Terms: Total purchase price, payment schedule, installment amounts, and payment methods

6. Retention of Title: Terms specifying that ownership remains with the seller until full payment, including registration requirements under Swiss law

7. Delivery and Risk: Delivery terms, timing, and transfer of risk in the goods

8. Seller's Warranties: Warranties regarding title, quality, and condition of the goods

9. Buyer's Obligations: Obligations including maintenance, insurance, and restrictions on use or resale

10. Default and Remedies: Consequences of payment default and seller's remedies, including repossession rights

11. Termination: Circumstances under which the agreement can be terminated and consequences

12. Governing Law and Jurisdiction: Confirmation of Swiss law governance and jurisdiction for disputes

13. Execution: Signature blocks and execution requirements

Optional Sections

1. Insurance Requirements: Detailed insurance obligations when the goods are of high value or specific insurance is required

2. Third Party Rights: Required when third parties have rights or obligations under the agreement

3. Export/Import Requirements: Necessary for international sales involving customs or export regulations

4. Installation and Training: Required for technical equipment requiring installation or user training

5. Maintenance Requirements: Specific maintenance obligations for complex or valuable goods

6. Assignment and Security: Terms regarding assignment of rights or creation of security interests

7. Force Majeure: Added for high-value transactions where risk allocation is crucial

Suggested Schedules

1. Schedule 1 - Goods Specification: Detailed technical specifications and descriptions of the goods

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

3. Schedule 3 - Delivery Schedule: Specific delivery dates and locations if multiple deliveries are involved

4. Schedule 4 - Maintenance Requirements: Detailed maintenance procedures and schedules if applicable

5. Schedule 5 - Form of Retention of Title Registration: Template for Swiss retention of title registration

6. Appendix A - Acceptance Certificate: Form for confirming delivery and acceptance of goods

7. Appendix B - Warranty Terms: Detailed warranty terms and claim procedures

Authors

Alex Denne

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

alex.den.21@genieai.co

Relevant legal definitions

Clauses

Relevant Industries

Manufacturing

Automotive

Industrial Equipment

Technology and Electronics

Construction Equipment

Agricultural Machinery

Medical Equipment

Luxury Goods

Transportation

Renewable Energy Equipment

Relevant Teams

Legal

Finance

Sales

Commercial

Risk and Compliance

Operations

Credit Control

Business Development

Procurement

Asset Management

Relevant Roles

Legal Counsel

Commercial Director

Sales Manager

Finance Director

Credit Controller

Contract Manager

Business Development Manager

Risk Manager

Compliance Officer

Operations Manager

General Counsel

Chief Financial Officer

Sales Director

Purchase Manager

Asset Manager

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Authors

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