Document background
The Installment Purchase Contract is essential for businesses operating in Saudi Arabia that offer goods or services on an installment payment basis. This document type is commonly used when a buyer wishes to purchase an asset but prefers to spread the payment over an agreed period, rather than making a single lump-sum payment. The agreement must comply with Saudi Arabian law, including the Finance Companies Control Law and SAMA regulations, while adhering to Sharia principles that prohibit conventional interest-based transactions. It typically includes comprehensive details about the asset, payment terms, delivery conditions, warranties, and security arrangements. This contract type is particularly relevant in today's market where financing options are increasingly important for both business-to-business and business-to-consumer transactions, requiring careful attention to both commercial and religious law compliance.
