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Installment Sale Agreement
"I need an Installment Sale Agreement for the sale of industrial manufacturing equipment worth SAR 2,000,000 to a Saudi company, with monthly installments over 24 months starting March 2025, including provisions for equipment maintenance and training."
1. Parties: Identification of seller and purchaser with full legal names, addresses, and commercial registration details
2. Background: Context of the transaction and confirmation of the seller's ownership of the goods
3. Definitions: Key terms used throughout the agreement, including technical, financial, and legal terminology
4. Sale and Purchase: Core provisions detailing the sale transaction, description of goods, and confirmation of Sharia compliance
5. Purchase Price and Payment Terms: Total price, down payment, installment amounts, payment schedule, and payment methods
6. Delivery and Transfer of Title: Terms regarding delivery of goods, transfer of ownership, and risk allocation
7. Warranties and Representations: Seller's warranties regarding goods and both parties' general representations
8. Security and Collateral: Details of any security interests, guarantees, or collateral arrangements
9. Events of Default: Circumstances constituting default and consequences thereof
10. Termination: Grounds for termination and the process for ending the agreement
11. Governing Law and Jurisdiction: Confirmation of Saudi law application and jurisdiction for disputes
12. Notices: Process and requirements for formal communications between parties
13. General Provisions: Standard boilerplate clauses including severability, entire agreement, and amendments
1. Insurance: Required when the goods need specific insurance coverage during the installment period
2. Maintenance and Usage: Included for goods requiring specific maintenance or having usage restrictions
3. Assignment: Include when either party may need to transfer rights or obligations
4. Early Payment Provisions: Optional terms for early settlement of installments
5. Force Majeure: Include for long-term installment agreements or when dealing with manufacturing goods
6. Inspection Rights: Required when seller maintains right to inspect goods during installment period
7. Third-Party Rights: Include when third parties (like guarantors) have specific rights under the agreement
1. Schedule 1 - Description of Goods: Detailed technical specifications and description of the goods being sold
2. Schedule 2 - Payment Schedule: Detailed breakdown of installment amounts and due dates
3. Schedule 3 - Delivery Terms: Specific details about delivery location, timing, and procedures
4. Schedule 4 - Warranty Terms: Detailed warranty terms and conditions
5. Appendix A - Required Documents: List of documents required for the transaction (e.g., ID documents, commercial registrations)
6. Appendix B - Form of Promissory Notes: Template for promissory notes if required for installment payments
7. Appendix C - Security Documentation: Forms and details of any security arrangements or guarantees
Authors
Retail
Automotive
Industrial Equipment
Consumer Electronics
Manufacturing
Construction Equipment
Home Appliances
Medical Equipment
Agricultural Equipment
Technology
Furniture and Furnishings
Heavy Machinery
Legal
Finance
Sales
Compliance
Risk Management
Operations
Commercial
Credit
Business Development
Customer Service
Documentation
Legal Counsel
Commercial Manager
Finance Manager
Sales Director
Credit Manager
Compliance Officer
Risk Manager
Contract Administrator
Business Development Manager
Operations Manager
Chief Financial Officer
General Counsel
Sales Representative
Account Manager
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