The Conditional Bill of Sale is a crucial document in German commercial practice, particularly utilized in situations where valuable goods are sold with payment in installments. This document type, governed by German law and specifically regulated under the German Civil Code (BGB), provides security for sellers while allowing buyers to take possession and use of goods before completing payment. The agreement includes essential details about the goods, payment terms, and conditions for title transfer, with the distinctive feature of Eigentumsvorbehalt (retention of title) protecting the seller's interests. The document is particularly relevant in both business-to-business and business-to-consumer contexts, requiring careful consideration of both civil and commercial law provisions. When implementing a Conditional Bill of Sale, parties must ensure compliance with German consumer protection laws if applicable, while maintaining clear terms for ownership transfer, maintenance obligations, and default remedies.
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1. Parties: Identification and details of the seller and buyer, including full legal names, addresses, and registration details if companies
2. Background: Context of the sale and brief description of the transaction purpose
3. Definitions: Key terms used throughout the agreement, including 'Goods', 'Purchase Price', 'Transfer Date', etc.
4. Subject Matter of Sale: Detailed description of the goods being sold and confirmation of seller's right to sell
5. Purchase Price: Amount, currency, and whether inclusive/exclusive of VAT
6. Payment Terms: Payment schedule, method of payment, and consequences of default
7. Retention of Title: Terms of the Eigentumsvorbehalt (retention of title) until full payment, including rights and obligations during this period
8. Delivery and Transfer: Delivery terms, timing, location, and risk transfer provisions
9. Seller's Warranties: Warranties regarding ownership, condition, and quality of the goods
10. Buyer's Obligations: Obligations regarding maintenance, insurance, and use of goods while under retention of title
11. Default and Remedies: Consequences of payment default and seller's rights to reclaim goods
12. Governing Law: Confirmation of German law application and jurisdiction
1. Insurance Requirements: Detailed insurance obligations when the goods are of high value or special nature
2. Third-Party Rights: Provisions regarding potential third-party involvement, particularly relevant for commercial goods
3. Export Controls: Required for goods subject to export restrictions or international trade
4. Maintenance Requirements: Specific maintenance obligations for complex machinery or equipment
5. Usage Restrictions: Specific restrictions on use or resale of goods before full payment
6. Registration Rights: For goods requiring official registration (e.g., vehicles)
7. Data Protection: Required when transaction involves processing of personal data
8. Force Majeure: Relevant for long-term payment arrangements or specific delivery conditions
1. Schedule 1 - Goods Description: Detailed technical specifications and description of the goods
2. Schedule 2 - Payment Schedule: Detailed payment terms including installment amounts and due dates
3. Schedule 3 - Delivery Details: Specific delivery instructions, locations, and requirements
4. Schedule 4 - Condition Report: Current condition of goods, particularly relevant for used items
5. Appendix A - Maintenance Manual: Required maintenance procedures and schedules
6. Appendix B - Warranty Terms: Detailed warranty conditions and claim procedures
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Automotive
Industrial Equipment
Construction
Agricultural Equipment
Technology Hardware
Medical Equipment
Heavy Machinery
Retail
Transportation
Renewable Energy
Relevant Teams
Legal
Finance
Sales
Procurement
Risk Management
Operations
Compliance
Credit Control
Commercial
Asset Management
Relevant Roles
Sales Manager
Contract Manager
Legal Counsel
Finance Director
Credit Controller
Commercial Director
Procurement Manager
Asset Manager
Business Development Manager
Risk Manager
Operations Manager
Compliance Officer
Chief Financial Officer
Sales Representative
Account Manager
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