(a) When a subsequent purchase is made, the seller shall deliver to the buyer, prior to the due date of the first installment, a memorandum which shall set forth the following:

(1) The names of the seller and the buyer, the place of business of the seller, the residence or place of business of the buyer as specified by the buyer and a description of the goods and services sufficient to identify them. Services or multiple items of goods may be described in general terms and may be described in detail in a separate writing.

(2) The cash sale price of the goods, services and accessories which are the subject matter of the new retail installment sale.

(3) The amount of the buyer’s down payment, itemizing the amounts paid in money and in goods and containing a brief description of the goods, if any, traded in.

(4) The difference between paragraphs (a)(2) and (a)(3) of this section.

(5) The amount, if any, included for insurance, specifying the coverages and the cost of each type of coverage.

(6) The amount, if any, of official fees.

(7) The unpaid balance, which is the sum of paragraphs (a)(4), (5) and (6) of this section.

(8) The unpaid time balance of the prior contract or contracts.

(9) The new unpaid balance, which is the sum of paragraphs (a)(7) and (8) of this section.

(10) The amount of the service charge computed in conformity with § 4315 of this title.

(11) The consolidated time balance, which is the sum of paragraphs (a)(9) and (10) of this section, payable by the buyer to the seller, the number of installments required, the amount of each installment expressed in dollars and the due date or period thereof.

(b) The items need not be stated in the sequence or order set forth above; additional items may be included to explain the computations made in determining the amounts to be paid by the buyer.

(c) This memorandum shall contain the statement that the seller is adding the subsequent purchase to the buyer’s existing contract in accordance with the provisions thereof.

6 Del. C. 1953, § 4329; 52 Del. Laws, c. 342.