Agreement For Supply Of Goods On Credit for United Arab Emirates

Agreement For Supply Of Goods On Credit Template for United Arab Emirates

A comprehensive commercial agreement governed by UAE law that establishes the terms and conditions for the supply of goods on credit between a supplier and buyer. The document incorporates UAE-specific commercial regulations, including provisions from the UAE Commercial Transactions Law and Civil Code, and addresses key aspects such as credit terms, payment schedules, security arrangements, and default remedies. It includes detailed provisions for ordering processes, delivery mechanisms, quality standards, and risk allocation, while ensuring compliance with UAE banking regulations and consumer protection requirements.

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What is a Agreement For Supply Of Goods On Credit?

The Agreement For Supply Of Goods On Credit is essential for businesses operating in the UAE that engage in regular supply arrangements where immediate payment is not required. This document is particularly relevant in the UAE market where credit-based trading is common and requires careful consideration of both UAE Commercial Law and Islamic finance principles. The agreement protects both suppliers and buyers by clearly defining credit terms, payment obligations, and security arrangements, while ensuring compliance with UAE banking regulations and commercial practices. It is commonly used when establishing ongoing supply relationships, particularly for substantial order volumes or high-value goods, and includes comprehensive provisions for delivery, quality control, default scenarios, and dispute resolution under UAE jurisdiction.

What sections should be included in a Agreement For Supply Of Goods On Credit?

1. Parties: Identification of supplier and buyer, including full legal names, addresses, and commercial registration details

2. Background: Context of the agreement, relationship between parties, and general commercial purpose

3. Definitions: Defined terms used throughout the agreement, including specific goods, credit terms, and technical terminology

4. Supply Terms: Details of goods to be supplied, specifications, quantities, and delivery schedules

5. Credit Terms: Credit limit, payment terms, interest rates (if applicable), and credit period

6. Ordering Process: Procedures for placing orders, order confirmation, and modification

7. Delivery and Acceptance: Delivery terms, inspection rights, acceptance procedures, and rejection protocols

8. Price and Payment: Pricing structure, payment schedule, invoicing procedures, and late payment consequences

9. Title and Risk: Transfer of ownership, risk allocation, and retention of title provisions

10. Warranties and Quality: Product quality guarantees, warranties, and compliance with UAE standards

11. Default and Remedies: Events of default, consequences, and available remedies including termination rights

12. Term and Termination: Duration of agreement, renewal terms, and termination provisions

13. General Provisions: Standard boilerplate clauses including governing law, notices, and dispute resolution

What sections are optional to include in a Agreement For Supply Of Goods On Credit?

1. Islamic Finance Compliance: Required when parties wish to ensure compliance with Sharia principles

2. Security Arrangements: Include when additional security for credit is required (guarantees, pledges, etc.)

3. Insurance: Detailed insurance requirements when high-value or high-risk goods are involved

4. Intellectual Property: Required when branded goods or licensed products are involved

5. Confidentiality: Include when sensitive commercial information will be exchanged

6. Force Majeure: Detailed force majeure provisions for high-value or critical supply arrangements

7. Export/Import Compliance: Required when goods are imported or involve international trade

8. Anti-Corruption: Include for compliance with UAE anti-corruption laws in major commercial deals

What schedules should be included in a Agreement For Supply Of Goods On Credit?

1. Schedule 1 - Goods Specification: Detailed technical specifications of goods to be supplied

2. Schedule 2 - Pricing Schedule: Detailed pricing structure, including any volume discounts or price adjustment mechanisms

3. Schedule 3 - Credit Terms: Detailed credit limits, payment schedules, and interest calculations

4. Schedule 4 - Delivery Schedule: Timing and frequency of deliveries, delivery locations

5. Schedule 5 - Quality Standards: Specific quality requirements and testing procedures

6. Schedule 6 - Form of Purchase Order: Standard form for placing orders under the agreement

7. Schedule 7 - Security Documents: Forms of any required guarantees or security documents

8. Appendix A - Contact Details: Key contact persons and their details for both parties

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Publisher

Genie AI

Document Type

Service Agreement

Cost

Free to use
Relevant Industries

Manufacturing

Wholesale Trade

Retail

Construction

Automotive

Electronics

Industrial Equipment

Consumer Goods

Food and Beverage

Pharmaceuticals

Textiles

Building Materials

Chemical Products

Agricultural Products

Relevant Teams

Legal

Finance

Procurement

Sales

Operations

Credit Control

Risk Management

Treasury

Compliance

Commercial Operations

Supply Chain

Accounts Receivable

Relevant Roles

Commercial Director

Procurement Manager

Supply Chain Manager

Credit Controller

Finance Director

Legal Counsel

Contract Manager

Sales Director

Chief Financial Officer

Operations Manager

Risk Manager

Treasury Manager

Accounts Receivable Manager

Commercial Operations Manager

Compliance Officer

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,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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