The Sale and Agreement to Sell document is a vital commercial instrument in the United Arab Emirates, used when parties wish to establish both immediate sale terms and future sale commitments in a single agreement. This document is particularly relevant when the sale involves complex assets, staged payments, or future deliverables. It must comply with UAE Federal Law No. 5 of 1985 (Civil Code) and UAE Federal Law No. 18 of 1993 (Commercial Transactions Law), ensuring all essential elements of a valid contract under UAE law are present. The agreement typically includes detailed provisions for payment terms, delivery schedules, warranties, transfer of title, and risk allocation, making it suitable for various commercial transactions from real estate to industrial equipment sales.
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1. Parties: Detailed identification of the seller and buyer, including full legal names, addresses, and registration details if companies
2. Background: Context of the transaction and brief description of the parties' intention to enter into the sale agreement
3. Definitions: Definitions of key terms used throughout the agreement
4. Sale and Purchase: Core terms of the sale including clear description of the subject matter being sold
5. Purchase Price: Detailed breakdown of the purchase price, payment terms, and payment schedule
6. Conditions Precedent: Any conditions that must be satisfied before the sale becomes effective
7. Completion: Details of the completion process, timing, and deliverables
8. Seller's Warranties: Warranties and representations made by the seller regarding the subject matter of sale
9. Buyer's Warranties: Warranties and representations made by the buyer
10. Title and Risk: When and how title and risk in the goods/property passes from seller to buyer
11. Termination: Circumstances under which the agreement can be terminated and consequences
12. Governing Law and Jurisdiction: Confirmation of UAE law as governing law and jurisdiction for disputes
13. Notices: Process and requirements for serving notices under the agreement
14. General Provisions: Standard boilerplate clauses including severability, entire agreement, and amendments
1. Due Diligence: Details of any due diligence process, used when the sale involves complex assets or business transfers
2. Intellectual Property: Provisions dealing with IP rights, needed when the sale includes intellectual property
3. Employees: Employment-related provisions, required when the sale involves transfer of employees
4. Tax Provisions: Specific tax-related provisions, important for large commercial transactions
5. Confidentiality: Detailed confidentiality obligations, important for commercial transactions
6. Non-Competition: Non-compete provisions, relevant in business sales
7. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in long-term sale agreements
8. Islamic Finance Compliance: Required when the transaction needs to comply with Islamic finance principles
1. Asset Schedule: Detailed description of assets being sold
2. Payment Schedule: Detailed breakdown of payment terms and installments
3. Form of Transfer Documents: Templates of documents required for completing the transfer
4. Specification Schedule: Technical specifications of goods or assets being sold
5. Due Diligence Results: Summary of due diligence findings and outstanding matters
6. Encumbrances: List of any existing encumbrances on the sale items
7. Required Consents: List of third-party consents required for the sale
8. Completion Checklist: List of actions and documents required for completion
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