The Conditional Sales Purchase Agreement is a vital legal instrument in Indian commercial transactions, particularly used when selling high-value goods or assets where the seller wishes to maintain ownership until full payment is received. This document type is structured under Indian law, specifically the Indian Contract Act 1872 and Sale of Goods Act 1930, and is commonly used in both business-to-business and business-to-consumer transactions. It provides comprehensive coverage of payment terms, delivery conditions, ownership rights, and default remedies while ensuring compliance with Indian registration and stamp duty requirements where applicable. The agreement is particularly useful in protecting the seller's interests while providing the purchaser with possession and use rights during the payment period.
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1. Parties: Identifies and provides full details of the seller and purchaser, including their legal status and addresses
2. Background: Sets out the context of the transaction and brief description of the subject matter of the sale
3. Definitions: Defines key terms used throughout the agreement for clarity and consistency
4. Subject Matter of Sale: Detailed description of the goods/property being sold, including specifications and quantity
5. Purchase Price: States the total purchase price and breakdown of any components
6. Payment Terms: Details the payment schedule, installment amounts, and payment methods
7. Conditions Precedent: Specifies conditions that must be satisfied before ownership transfers
8. Transfer of Title: Explains when and how ownership transfers from seller to purchaser
9. Delivery Terms: Specifies delivery arrangements, timing, and responsibilities
10. Seller's Representations and Warranties: Lists seller's warranties regarding the goods/property
11. Purchaser's Representations and Warranties: Lists purchaser's warranties and commitments
12. Default and Remedies: Specifies events of default and available remedies
13. Repossession Rights: Details seller's rights to repossess in case of default
14. Governing Law: Specifies Indian law as governing law and jurisdiction
15. Dispute Resolution: Sets out process for resolving disputes
16. Notices: Specifies how formal notices should be given between parties
17. Execution: Signature blocks and execution formalities
1. Insurance: Required when insurance of goods is necessary during the conditional period
2. Maintenance and Use: Include when there are specific requirements for maintaining goods during the conditional period
3. Assignment: Include if either party needs the right to assign their rights/obligations
4. Security Interest: Include when additional security is required beyond the conditional nature of the sale
5. Third Party Rights: Include when third parties may have rights under the agreement
6. Force Majeure: Include when protection against unforeseen events is needed
7. Confidentiality: Include when transaction involves sensitive information
8. Indemnification: Include when specific indemnities are required beyond standard warranties
1. Schedule 1 - Description of Goods: Detailed technical specifications, photographs, or drawings of the goods
2. Schedule 2 - Payment Schedule: Detailed breakdown of installment amounts and due dates
3. Schedule 3 - Delivery Schedule: Detailed delivery timelines and locations if complex or multiple deliveries
4. Schedule 4 - Condition Report: Initial condition report of goods if used/pre-owned
5. Schedule 5 - Required Insurance: Details of required insurance coverage
6. Appendix A - Form of Notice: Standard form for various notices under the agreement
7. Appendix B - Handover Protocol: Process and checklist for physical handover of goods
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