The Conditional Sales Purchase Agreement is a specialized contract commonly used in the United Arab Emirates for transactions where the seller wishes to maintain ownership of goods until full payment is received, while allowing the buyer immediate use of the goods. This document type is particularly relevant for high-value commercial transactions and is structured in accordance with UAE Federal Law No. 5 of 1985 (Civil Code) and Federal Law No. 18 of 1993 (Commercial Code). It includes detailed provisions for payment terms, title retention, risk allocation, and default remedies, making it suitable for business equipment purchases, industrial machinery sales, and similar transactions where staged payments are preferred. The agreement provides security for sellers while facilitating business growth for buyers through asset acquisition without immediate full payment.
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1. Parties: Identification of buyer and seller with full legal names, addresses, and registration details as per UAE requirements
2. Background: Context of the transaction and brief description of the subject matter of the sale
3. Definitions: Definitions of key terms used throughout the agreement
4. Sale and Purchase: Details of the goods being sold and the conditional nature of the sale
5. Purchase Price: Specification of the purchase price, payment schedule, and payment methods
6. Title Retention: Clear statement that title remains with seller until full payment, as per UAE property law
7. Delivery and Risk: Terms of delivery, transfer of risk, and responsibilities of each party
8. Conditions and Warranties: Standard conditions and warranties applicable to the goods
9. Buyer's Obligations: Specific obligations of the buyer including maintenance and insurance of goods
10. Default and Termination: Consequences of default and circumstances for termination
11. Repossession Rights: Seller's rights to repossess goods in case of default
12. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction for disputes
13. Notices: Process and requirements for serving notices under the agreement
1. Insurance: Detailed insurance requirements when goods are of high value or specific insurance is needed
2. Intellectual Property: For sales involving software, technology or branded goods
3. Export/Import Requirements: For international sales requiring specific documentation or permits
4. Installation and Training: For complex equipment requiring installation or operator training
5. Maintenance and Support: For goods requiring ongoing maintenance or technical support
6. Security Arrangements: Additional security requirements beyond title retention
7. Force Majeure: Specific force majeure provisions beyond standard terms
8. Assignment and Sub-Contracting: Rights to assign or sub-contract obligations
9. Compliance with Laws: Specific regulatory compliance requirements for regulated goods
1. Schedule 1 - Description of Goods: Detailed technical specifications and description of the goods
2. Schedule 2 - Payment Schedule: Detailed breakdown of payment installments and due dates
3. Schedule 3 - Delivery Schedule: Specific delivery timelines and locations
4. Schedule 4 - Warranty Terms: Detailed warranty terms and conditions
5. Schedule 5 - Maintenance Requirements: Specific maintenance requirements for the goods
6. Schedule 6 - Form of Notice: Standard forms for various notices under the agreement
7. Schedule 7 - Technical Documentation: List of technical documents to be provided with the goods
Authors
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Automotive
Industrial Equipment
Technology and Software
Construction
Heavy Machinery
Consumer Goods
Medical Equipment
Agricultural Equipment
Renewable Energy
Relevant Teams
Legal
Commercial
Finance
Procurement
Sales
Risk
Operations
Compliance
Credit Control
Business Development
Relevant Roles
Legal Counsel
Commercial Director
Procurement Manager
Finance Director
Sales Manager
Contract Manager
Risk Manager
Business Development Manager
Operations Director
Credit Controller
Chief Financial Officer
General Counsel
Compliance Officer
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