Commercial Sale Contract for United Arab Emirates

Commercial Sale Contract Template for United Arab Emirates

A comprehensive legal document governed by UAE law that establishes the terms and conditions for the sale of goods between commercial entities. This contract adheres to the UAE Federal Law No. 5 of 1985 (Civil Code) and Federal Law No. 18 of 1993 (Commercial Transactions Law), incorporating essential elements such as precise product specifications, payment terms, delivery conditions, and warranty provisions. The document ensures compliance with UAE commercial regulations while providing a clear framework for business transactions, including necessary provisions for dispute resolution under UAE jurisdiction.

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What is a Commercial Sale Contract?

The Commercial Sale Contract is a fundamental document used in UAE business transactions for the sale of goods between commercial entities. It is particularly relevant for companies operating within the UAE's diverse commercial landscape, including free trade zones and mainland businesses. This contract type incorporates essential provisions required under UAE Federal Laws, including the Civil Code and Commercial Transactions Law, while considering Sharia law principles. It's designed to protect both buyers' and sellers' interests in commercial transactions, covering crucial aspects such as payment terms, delivery conditions, warranties, and dispute resolution mechanisms. The document is especially important given the UAE's position as a major international trading hub, requiring careful attention to both local regulations and international commercial practices.

What sections should be included in a Commercial Sale Contract?

1. Parties: Identification of seller and buyer with full legal names, addresses, and registration details as per UAE requirements

2. Background: Context of the transaction and brief description of the parties' business relationship

3. Definitions: Definitions of key terms used throughout the agreement

4. Sale and Purchase: Core transaction terms including clear description of goods being sold

5. Price and Payment: Purchase price, payment terms, method of payment, and currency

6. Delivery: Delivery terms, timeline, location, and transfer of risk

7. Title and Risk: Transfer of ownership and risk in the goods

8. Warranties and Representations: Standard warranties regarding ownership, quality, and condition of goods

9. Inspection and Acceptance: Procedures for inspecting and accepting the goods

10. Term and Termination: Duration of agreement and circumstances for termination

11. Confidentiality: Protection of confidential information exchanged during the transaction

12. Force Majeure: Events beyond parties' control affecting contract performance

13. Governing Law and Jurisdiction: UAE law as governing law and jurisdiction for disputes

14. General Provisions: Standard boilerplate clauses including notices, amendments, and entire agreement

What sections are optional to include in a Commercial Sale Contract?

1. Import/Export Requirements: Include when goods require cross-border movement, detailing customs and regulatory requirements

2. Islamic Finance Compliance: Include when transaction needs to comply with Sharia principles

3. Insurance: Include when specific insurance requirements are needed for high-value or risky goods

4. Intellectual Property: Include when sale involves software, branded goods, or IP rights

5. Training and Support: Include when seller must provide training or ongoing support

6. Environmental Compliance: Include when goods have environmental implications or requirements

7. Agency and Distribution Rights: Include when sale involves distribution or agency rights

8. Return and Refund Policy: Include for goods that may require return procedures

What schedules should be included in a Commercial Sale Contract?

1. Schedule 1 - Product Specifications: Detailed technical specifications of goods being sold

2. Schedule 2 - Pricing Schedule: Detailed breakdown of prices, especially for multiple items

3. Schedule 3 - Delivery Schedule: Detailed delivery timelines and locations for multiple deliveries

4. Schedule 4 - Quality Standards: Specific quality requirements and standards to be met

5. Schedule 5 - Warranty Terms: Detailed warranty terms and procedures

6. Schedule 6 - After-Sales Service: Details of any after-sales service or maintenance requirements

7. Appendix A - Required Documents: List of documents required for the transaction (e.g., certificates of origin, quality certificates)

8. Appendix B - Testing Procedures: Detailed procedures for testing and acceptance of goods

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

Purchase Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Manufacturing

Retail

Wholesale Trade

Import/Export

Technology

Construction Materials

Automotive

Electronics

Industrial Equipment

Consumer Goods

Textiles

Food and Beverage

Pharmaceuticals

Oil and Gas

Precious Metals

Relevant Teams

Legal

Procurement

Sales

Commercial

Finance

Operations

Compliance

Supply Chain

Risk Management

International Trade

Contract Administration

Relevant Roles

Commercial Director

Procurement Manager

Sales Manager

Legal Counsel

Contract Administrator

Supply Chain Manager

Chief Commercial Officer

Business Development Manager

Operations Director

Finance Manager

Compliance Officer

Import/Export Manager

Trade Finance Manager

Risk Manager

General Counsel

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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