The characteristic of an installment contract is that the e-commerce company pays the payment in several installments after receiving the goods, or the e-commerce company pays a certain amount of payment in batches before the supplier starts to supply the goods in batches. Generally speaking, after the e-commerce company receives all the goods, the payment should be paid in at least two installments to be called an installment payment.
Installment contracts are a special type of contract. The essential difference from other contracts is that the e-commerce company does not pay the full payment at once, but pays the payment in batches according to the agreed period. The installment payment method is a common mode of installment contracts with the main purpose of agreeing on procurement matters.
So, as long as the contract stipulates that the e-commerce company will pay the payment in different time periods, it can be identified as an installment contract? This requires an explanation of “installment”. In an installment contract, “installment” means divided into different time periods. For example, the two parties agree in the contract that the payment will be paid in 10 installments, each payment will be paid before the last day of each month, starting from the month when the contract is signed. It can be seen that the time period emphasized in the installment contract is fixed.
In addition, installment contracts have two other characteristics: one is the advance delivery of goods, that is, after the e-commerce company pays the first payment, the supplier must immediately complete the delivery of the goods; the other is the installment payment of the payment, that is, the e-commerce company needs to pay the payment for the goods in two or more installments after obtaining the goods, otherwise the signed contract does not belong to the installment contract.
From the above information, it can be seen that the payment method and payment period of the installment contract are quite special. For example, the two parties agree in advance to pay a certain amount of money in a certain period of time in the future. It can be said that the installment contract is more like a credit transaction, and the premise of this transaction is that both parties have the ability to pay and supply goods on time.
Nowadays, there is often a phenomenon that contracts cannot be smoothly executed due to credit crises. Even if there are penalty clauses for violators in the contract, it is still difficult to implement, and it is easy to bring bad effects to the other party. For example, the e-commerce company did not foresee that the supplier may not be able to supply goods normally due to capital turnover problems, which will seriously affect the normal operation of the supply chain.
Therefore, in order to safeguard the legitimate interests of e-commerce companies and suppliers, the contract must clearly state the obligations that both parties should bear, and include liability for breach of contract, and set a specific amount for breach of contract. Before formally signing the contract, the e-commerce company must review and check the content and terms, including the quantity of goods, quality standards, packaging requirements, payment methods and delivery locations, etc.
Tips
The content and terms of the installment payment contract should preferably be beneficial to both parties. Of course, no matter what the content and terms are, both parties must strictly implement them after signing the contract.