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The Forward Sale Agreement is a crucial commercial document used in the United Arab Emirates for transactions involving future delivery of goods or services. It is particularly relevant for businesses engaged in manufacturing, trading, and supply chain operations where advance ordering and production planning are essential. The agreement must comply with UAE Federal Laws, including the Civil Code and Commercial Code, while adhering to Sharia principles regarding forward sales. This document typically includes detailed specifications of goods/services, delivery schedules, quality requirements, payment terms (often requiring advance payment as per Sharia principles), and risk allocation mechanisms. It's commonly used in industries requiring significant lead time between order and delivery, such as manufacturing, construction materials, and commodities trading. The agreement provides legal certainty for both parties while ensuring compliance with UAE's unique legal framework that combines civil law and Sharia principles.

1. Parties: Identification and details of the seller and buyer, including full legal names, registration numbers, and addresses

2. Background: Context of the transaction, relationship between parties, and purpose of the forward sale agreement

3. Definitions and Interpretation: Definitions of key terms used in the agreement and rules of interpretation

4. Sale and Purchase Obligation: Core terms of the forward sale, including description of goods/services to be delivered

5. Price and Payment Terms: Purchase price, payment schedule, and payment mechanics in compliance with Sharia requirements

6. Delivery Terms: Delivery schedule, location, method, and acceptance procedures

7. Specifications and Quality Requirements: Detailed requirements for the goods/services to be delivered

8. Representations and Warranties: Standard and specific warranties regarding capacity, authority, and quality of goods

9. Events of Default: Circumstances constituting default and consequences thereof

10. Termination: Grounds for termination and post-termination procedures

11. Force Majeure: Events excusing performance and related procedures

12. Governing Law and Jurisdiction: UAE law as governing law and jurisdiction provisions

13. Notices: Communication procedures and contact details

14. General Provisions: Standard boilerplate provisions including assignment, amendments, and entire agreement