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Agreement For Partial Payment for Germany

Agreement For Partial Payment Template for Germany

A German law-governed Agreement for Partial Payment (Teilzahlungsvereinbarung) is a legally binding document that establishes a structured payment plan between a creditor and debtor. The agreement outlines the terms under which an existing debt will be paid in installments, including specific payment amounts, schedule, and consequences of default. Governed by the German Civil Code (BGB), this agreement provides legal security for both parties while facilitating manageable debt repayment through scheduled partial payments. It includes essential provisions for interest calculations, default scenarios, and potential early payment options, all compliant with German legal requirements.

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Agreement For Partial Payment

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What is a Agreement For Partial Payment?

The Agreement for Partial Payment is a crucial document used when a debtor cannot fulfill their payment obligations in a single installment, necessitating a structured repayment plan. This agreement type is particularly relevant in the German legal context, where it must comply with the German Civil Code (BGB) and related regulations. It serves as a formal documentation of the parties' arrangement to modify the original payment terms, typically used in situations involving substantial debts, business transactions, or consumer payments. The agreement includes detailed payment schedules, interest calculations, and default provisions, providing both parties with legal certainty while facilitating manageable debt repayment. It's commonly used in both B2B and B2C contexts, especially during financial restructuring, debt management, or when maintaining business relationships while addressing payment challenges.

What sections should be included in a Agreement For Partial Payment?

1. Parties: Identification of the creditor and debtor, including full legal names, addresses, and registration details if companies

2. Background: Description of the original debt, its origin, and the circumstances leading to this partial payment arrangement

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

4. Acknowledgment of Debt: Formal acknowledgment of the total amount owed and validation of the original debt

5. Payment Terms: Details of the partial payment arrangement, including payment amounts, frequency, and method of payment

6. Payment Schedule: Specific dates or intervals when payments are to be made and the amount of each payment

7. Interest: Terms regarding any interest applicable to the outstanding balance

8. Default Provisions: Consequences of missing payments and what constitutes a default

9. Representations and Warranties: Basic statements about the parties' capacity to enter into the agreement and the validity of the debt

10. Notices: How formal communications between parties should be made

11. Governing Law and Jurisdiction: Confirmation of German law as governing law and jurisdiction for disputes

What sections are optional to include in a Agreement For Partial Payment?

1. Security: Details of any collateral or security provided to guarantee the payments - include if security is being provided

2. Early Payment Provisions: Terms for early repayment and any associated discounts - include if early payment options are offered

3. Third Party Guarantees: Details of any guarantors or third-party assurances - include if there are guarantors

4. Insurance Requirements: Any insurance requirements to protect the payment stream - include if insurance is required

5. Debt Forgiveness Terms: Conditions under which part of the debt may be forgiven - include if partial debt forgiveness is offered

6. Force Majeure: Provisions for unforeseen circumstances affecting payment ability - include for longer-term payment plans

7. Confidentiality: Terms regarding confidentiality of the arrangement - include if privacy is a concern

8. Assignment: Rights to assign the agreement to third parties - include if assignment rights are needed

What schedules should be included in a Agreement For Partial Payment?

1. Payment Schedule: Detailed schedule showing all payment dates, amounts, and running balance

2. Original Debt Documentation: Copies or summaries of documents evidencing the original debt

3. Security Documentation: Details and documentation of any security or collateral provided

4. Direct Debit Authorization: If applicable, the direct debit (Lastschrift) authorization forms

5. Guarantor Documents: If applicable, documents relating to third-party guarantees

6. Proof of Identity: Copies of identification documents for the parties

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

Germany

Document Type

Payment Agreement

Sector

Banking

Cost

Free to use
Relevant legal definitions


































Clauses



























Relevant Industries

Financial Services

Banking

Retail

Manufacturing

Construction

Professional Services

Healthcare

Real Estate

Wholesale Trade

Education

Telecommunications

Utilities

Transportation and Logistics

Relevant Teams

Legal

Finance

Credit Control

Accounts Receivable

Treasury

Risk Management

Collections

Commercial Operations

Corporate Advisory

Debt Recovery

Relevant Roles

Credit Manager

Financial Controller

Accounts Receivable Manager

Collections Specialist

Legal Counsel

Finance Director

Account Manager

Risk Manager

Treasury Manager

Debt Recovery Officer

Commercial Director

Chief Financial Officer

Credit Risk Analyst

Business Development Manager

Corporate Lawyer

Industries








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