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Initial Contract Of Sale for United Arab Emirates

Initial Contract Of Sale Template for United Arab Emirates

An Initial Contract of Sale governed by UAE law is a legally binding agreement that establishes the fundamental terms and conditions for the transfer of goods or property from a seller to a buyer. This document complies with the UAE Civil Code (Federal Law No. 5 of 1985) and related commercial legislation, incorporating essential elements such as clear identification of parties, precise description of the sale object, agreed price, payment terms, delivery conditions, and transfer of ownership provisions. The contract serves as the primary document establishing the rights and obligations of both parties while ensuring compliance with UAE's specific legal requirements regarding contract formation and execution.

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Initial Contract Of Sale

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What is a Initial Contract Of Sale?

The Initial Contract of Sale is a crucial document used in the United Arab Emirates to formalize the first agreement between parties for the sale and purchase of goods or property. This contract type is essential when parties are entering into a new sales relationship and need to document their agreement in compliance with UAE law, particularly the Civil Code (Federal Law No. 5 of 1985) and Commercial Transactions Law (Federal Law No. 18 of 1993). The document captures all essential elements required for a valid sale contract under UAE law, including clear identification of the parties, detailed description of the sale object, agreed price, payment terms, delivery conditions, and transfer of ownership provisions. It serves as the foundation for the commercial relationship between the parties and can be used across various sectors, from simple consumer goods to complex industrial equipment sales.

What sections should be included in a Initial Contract Of Sale?

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

2. Background: Context of the sale transaction and brief description of the parties' intentions

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

4. Subject Matter of Sale: Detailed description of the goods/property being sold

5. Purchase Price: Amount, currency, and payment terms including installment details if applicable

6. Payment Terms: Method of payment, payment schedule, and consequences of late payment

7. Delivery Terms: Timing, location, and method of delivery, including risk transfer

8. Title Transfer: When and how legal ownership transfers from seller to buyer

9. Seller's Obligations: Key responsibilities of the seller including quality assurance and documentation

10. Buyer's Obligations: Key responsibilities of the buyer including inspection and acceptance

11. Representations and Warranties: Standard warranties about ownership, quality, and condition of goods

12. Termination: Circumstances under which the contract can be terminated

13. Governing Law and Jurisdiction: Confirmation of UAE law application and jurisdiction

14. Notices: How formal communications between parties should be made

15. Execution: Signature blocks and execution requirements

What sections are optional to include in a Initial Contract Of Sale?

1. Conditions Precedent: Prerequisites that must be met before the sale becomes effective, used for complex transactions

2. Insurance: Insurance requirements during transit or storage, relevant for high-value goods

3. Intellectual Property: IP rights provisions, needed when sale involves branded goods or technology

4. Export/Import Requirements: Customs and regulatory compliance sections for international sales

5. Force Majeure: Provisions for unforeseen circumstances, particularly relevant for long-term or complex deliveries

6. Confidentiality: Non-disclosure provisions, important for commercial sensitive transactions

7. Assignment: Rights to transfer the contract to other parties, relevant for complex commercial arrangements

8. Dispute Resolution: Alternative dispute resolution procedures, useful for high-value transactions

9. Language: Specification of prevailing language if contract is bilingual, common in UAE

10. Bank Guarantees: Requirements for performance or payment guarantees, used in high-value transactions

What schedules should be included in a Initial Contract Of Sale?

1. Schedule 1 - Product Specifications: Detailed technical specifications of goods being sold

2. Schedule 2 - Payment Schedule: Detailed breakdown of payment installments and timing

3. Schedule 3 - Delivery Schedule: Detailed delivery timelines and logistics requirements

4. Schedule 4 - Quality Standards: Specific quality requirements and testing procedures

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

6. Appendix A - Product Photos/Drawings: Visual documentation of the goods being sold

7. Appendix B - Certificates: Relevant certificates, permits, or authorizations

8. Appendix C - Warranty Terms: Detailed warranty conditions and procedures

9. Appendix D - Company Documents: Corporate documents proving authority to enter into contract

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

Retail

Manufacturing

Real Estate

Automotive

Technology

Consumer Goods

Industrial Equipment

Construction Materials

Electronics

Furniture and Home Goods

Textiles and Apparel

Food and Beverage

Pharmaceuticals

Agriculture

Energy

Relevant Teams

Legal

Procurement

Sales

Finance

Operations

Supply Chain

Compliance

Risk Management

Commercial

Business Development

Contract Administration

Relevant Roles

Legal Counsel

Commercial Director

Procurement Manager

Sales Manager

Contract Administrator

Business Development Manager

Finance Manager

Operations Manager

Supply Chain Manager

Compliance Officer

Risk Manager

General Manager

CEO

Managing Director

Commercial Contracts Specialist

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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