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Credit Sale Agreement for Switzerland

Credit Sale Agreement Template for Switzerland

A comprehensive legal agreement governed by Swiss law that combines elements of both a sale contract and a credit agreement. It enables the purchase of goods through credit financing, detailing the terms of sale, credit conditions, payment schedules, and security arrangements. The document must comply with the Swiss Code of Obligations (OR) and Consumer Credit Act (KKG), including mandatory consumer protection provisions, interest rate limitations, and formal requirements. It establishes the rights and obligations of both parties regarding the sale of goods, credit terms, retention of title, and enforcement mechanisms.

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Credit Sale Agreement

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What is a Credit Sale Agreement?

The Credit Sale Agreement is a specialized contract used in Switzerland when goods are sold with financing provided by the seller or a related financial institution. This document type is particularly relevant for substantial purchases where immediate full payment isn't feasible or desired. The agreement must strictly comply with Swiss regulatory requirements, including the Consumer Credit Act (KKG) and Code of Obligations (OR), especially regarding interest rate caps, mandatory disclosures, and consumer protection provisions. It typically includes detailed specifications of the goods, comprehensive credit terms, payment schedules, security arrangements, and default provisions. The document is essential for businesses offering in-house financing options and requires careful consideration of both commercial and regulatory aspects.

What sections should be included in a Credit Sale Agreement?

1. Parties: Identification of the seller/creditor and buyer/debtor with full legal names and addresses

2. Background: Context of the transaction, including the nature of the goods being sold and the purpose of the credit arrangement

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

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

5. Purchase Price: Total purchase price of the goods before credit charges

6. Credit Terms: Amount of credit, interest rate, annual percentage rate (APR), and total amount payable

7. Payment Terms: Payment schedule, installment amounts, and payment methods

8. Delivery and Transfer of Title: Terms for delivery of goods and when title passes to the buyer

9. Retention of Title: Provisions maintaining seller's ownership until full payment

10. Warranties and Representations: Warranties regarding the goods and representations by both parties

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

12. Termination: Circumstances under which the agreement can be terminated

13. Governing Law and Jurisdiction: Confirmation of Swiss law application and jurisdiction

What sections are optional to include in a Credit Sale Agreement?

1. Security Interest: Additional security requirements beyond retention of title, used for high-value transactions

2. Insurance: Requirements for insurance of goods, typically used for valuable items

3. Early Repayment: Terms for early repayment of the credit, required if early repayment is permitted

4. Assignment: Provisions regarding the assignment of rights, used when assignment might be contemplated

5. Third-Party Guarantees: Terms for guarantor involvement, used when additional security is required

6. Maintenance and Use: Conditions for maintaining and using the goods, relevant for complex or valuable items

7. Force Majeure: Provisions for unforeseen circumstances, used in long-term or high-value agreements

8. Data Protection: Privacy and data handling provisions, required if personal data processing is extensive

What schedules should be included in a Credit Sale Agreement?

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

2. Schedule 2 - Payment Schedule: Detailed amortization table showing all payments, interest, and principal

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

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

5. Appendix A - Credit Information Form: Mandatory consumer credit information as required by Swiss law

6. Appendix B - Right of Withdrawal Notice: Statutory notice of the right to withdraw from the agreement

7. Appendix C - Insurance Requirements: Detailed insurance specifications if required

8. Appendix D - Condition Report: Initial condition report of the goods at time of sale

Authors

Alex Denne

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

Jurisdiction

Switzerland

Document Type

Sales Contract

Sector

Sales

Cost

Free to use
Relevant legal definitions












































Clauses
































Relevant Industries

Automotive

Industrial Equipment

Consumer Electronics

Machinery

Agricultural Equipment

Construction Equipment

Luxury Goods

Commercial Vehicles

Medical Equipment

Renewable Energy Equipment

Office Equipment

Manufacturing

Retail

Technology

Relevant Teams

Legal

Finance

Sales

Compliance

Risk Management

Commercial

Credit Control

Operations

Business Development

Collections

Contract Administration

Relevant Roles

Legal Counsel

Credit Manager

Sales Director

Finance Manager

Compliance Officer

Risk Manager

Commercial Director

Contract Administrator

Chief Financial Officer

Business Development Manager

Credit Risk Analyst

Collections Manager

Account Executive

Operations 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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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