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Guaranteed Sale Agreement for United Arab Emirates

Guaranteed Sale Agreement Template for United Arab Emirates

A Guaranteed Sale Agreement under UAE law is a specialized commercial contract that combines a sale transaction with a guarantee mechanism, providing additional security for the seller. This agreement is governed by UAE Federal Laws, including the Civil Code and Commercial Transactions Law, and may also incorporate Sharia-compliant provisions where required. The document establishes the terms of sale, payment obligations, and the scope of the guarantee, while ensuring compliance with UAE regulatory requirements and commercial practices. It includes specific provisions for enforcement, dispute resolution, and remedies available under UAE law.

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What is a Guaranteed Sale Agreement?

The Guaranteed Sale Agreement is a sophisticated commercial instrument used in the United Arab Emirates for transactions where additional security is required beyond standard sale terms. This document type is particularly valuable in high-value commercial transactions or where there are concerns about payment or performance risks. The agreement combines standard sale provisions with guarantee mechanisms, making it suitable for complex commercial arrangements where third-party assurance is needed. The document must comply with UAE Federal Laws, including the Civil Code (Federal Law No. 5 of 1985) and Commercial Transactions Law (Federal Law No. 18 of 1993), and can be structured to accommodate Sharia principles when required. It typically includes detailed provisions on the guarantee's scope, enforcement mechanisms, and the interplay between the primary sale obligations and the guarantee provisions.

What sections should be included in a Guaranteed Sale Agreement?

1. Parties: Identification of all parties involved in the agreement, including seller, buyer, and guarantor

2. Background: Context of the transaction and relationship between the parties

3. Definitions: Definitions of key terms used throughout the agreement

4. Sale and Purchase: Core terms of the sale including subject matter, purchase price, and payment terms

5. Guarantee Provisions: Terms of the guarantee including scope, duration, and conditions

6. Representations and Warranties: Statements of fact and assurances from all parties

7. Delivery and Transfer of Title: Terms regarding delivery of goods/assets and transfer of ownership

8. Payment Terms: Detailed payment obligations, including method, timing, and currency

9. Conditions Precedent: Conditions that must be satisfied before the agreement becomes effective

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

11. Enforcement of Guarantee: Process and conditions for enforcing the guarantee

12. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction for disputes

13. Notices: Communication procedures between parties

14. Execution: Signature blocks and execution formalities

What sections are optional to include in a Guaranteed Sale Agreement?

1. Islamic Finance Compliance: Required if the transaction needs to be Sharia-compliant

2. Tax Provisions: Include if there are specific tax implications or requirements

3. Insurance: Required if specific insurance coverage is needed for the subject matter

4. Regulatory Compliance: Include if the transaction involves regulated activities or sectors

5. Force Majeure: Optional provisions for unforeseen circumstances affecting performance

6. Confidentiality: Include if sensitive information will be exchanged

7. Assignment: Include if rights/obligations may need to be transferred

8. Third Party Rights: Include if third parties may have enforceable rights under the agreement

What schedules should be included in a Guaranteed Sale Agreement?

1. Schedule 1 - Description of Goods/Assets: Detailed description of the subject matter of sale

2. Schedule 2 - Payment Schedule: Detailed payment terms and installment schedule if applicable

3. Schedule 3 - Form of Guarantee: The specific form and wording of the guarantee

4. Schedule 4 - Condition Report: Detailed condition assessment of goods/assets if applicable

5. Schedule 5 - Required Documents: List of documents required for completion

6. Appendix A - Completion Checklist: Checklist of actions required for completion

7. Appendix B - Notice Forms: Template forms for various notices under the agreement

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Document Type

Sales Agreement

Sector

Sales

Cost

Free to use
Relevant legal definitions










































Clauses





































Relevant Industries

Real Estate

Manufacturing

Automotive

Industrial Equipment

Construction

Trading & Distribution

Retail

Technology

Energy

Infrastructure

Maritime

Aviation

Relevant Teams

Legal

Finance

Commercial

Procurement

Sales

Risk Management

Treasury

Business Development

Compliance

Operations

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Commercial Director

Legal Counsel

Contract Manager

Procurement Manager

Sales Director

Risk Manager

Treasury Manager

Business Development Manager

Finance Manager

Compliance Officer

General Counsel

Operations Director

Industries






Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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