Document background
The Forward Sale Agreement template is designed for use in Saudi Arabian business transactions where parties wish to establish a legally binding and Sharia-compliant arrangement for the future delivery of goods against advance payment. This document type is particularly relevant for manufacturers, traders, and businesses engaged in industrial or commercial activities where production or procurement lead times necessitate forward planning. The agreement incorporates essential elements required by Saudi law and Sharia principles, including clear specification of goods, fixed delivery dates, and upfront payment terms. It addresses key commercial considerations while ensuring compliance with local regulations, SAMA guidelines, and Islamic financial principles. The document is structured to protect both parties' interests while maintaining the validity requirements of a Salam contract under Saudi jurisdiction.
