General Purchase Agreement for United Arab Emirates

General Purchase Agreement Template for United Arab Emirates

A comprehensive legal document governed by UAE law that establishes the terms and conditions for the purchase of goods between two parties. This agreement complies with UAE Federal Law No. 5 of 1985 (Civil Code) and Federal Law No. 18 of 1993 (Commercial Code), incorporating essential elements such as pricing, delivery terms, warranties, and quality standards. The document provides a robust framework for commercial transactions in the UAE, addressing both domestic and international trade requirements while ensuring compliance with local regulations and commercial practices.

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What is a General Purchase Agreement?

The General Purchase Agreement serves as a foundational document for commercial transactions in the United Arab Emirates, providing a standardized framework for the purchase and sale of goods. This document is essential for businesses operating in the UAE market, whether they are local companies, free zone entities, or international corporations engaging in trade within the UAE. The agreement encompasses all crucial aspects of a purchase transaction, including detailed specifications of goods, pricing structures, delivery terms, and quality requirements, while ensuring compliance with UAE Federal Laws, particularly the Civil Code and Commercial Code. It is designed to protect both buyers' and sellers' interests while facilitating smooth commercial operations in accordance with UAE legal requirements and business practices.

What sections should be included in a General Purchase Agreement?

1. Parties: Identification of the buyer and seller with full legal names, addresses, and registration details as required under UAE law

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

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

4. Scope of Supply: Detailed description of the goods to be purchased, including quantities and specifications

5. Price and Payment Terms: Purchase price, payment schedule, method of payment, and currency specifications

6. Delivery Terms: Delivery schedule, location, method, and Incoterms (if applicable)

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

8. Quality and Inspection: Quality standards, inspection procedures, and acceptance criteria

9. Warranties: Seller's warranties regarding the goods and disclaimer of warranties

10. Termination: Grounds for termination and consequences thereof

11. Force Majeure: Events constituting force majeure and resulting obligations

12. Confidentiality: Protection of confidential information exchanged between parties

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

14. Notices: Method and addresses for formal communications between parties

15. General Provisions: Standard boilerplate clauses including entire agreement, amendments, and severability

What sections are optional to include in a General Purchase Agreement?

1. Intellectual Property Rights: Required when the goods involve intellectual property or licensed technology

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

3. Import/Export Compliance: Required for international transactions or cross-emirate movements

4. Performance Security: Include when bank guarantees or performance bonds are required

5. Change Control: Necessary for long-term agreements or complex supply arrangements

6. Anti-Corruption Compliance: Important for international transactions or government-related purchases

7. Environmental Compliance: Required when goods or their use have environmental implications

8. Spare Parts and After-Sales Service: Include for technical equipment or machinery purchases

What schedules should be included in a General Purchase Agreement?

1. Schedule 1 - Technical Specifications: Detailed technical specifications of the goods

2. Schedule 2 - Pricing Schedule: Detailed breakdown of prices, including any volume discounts or price adjustment mechanisms

3. Schedule 3 - Delivery Schedule: Detailed delivery timeline and milestones

4. Schedule 4 - Quality Standards and Testing Procedures: Specific quality requirements and testing protocols

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

6. Appendix A - Form of Purchase Order: Standard form for individual purchase orders under the agreement

7. Appendix B - Acceptance Certificate Template: Standard form for acknowledging receipt and acceptance of goods

8. Appendix C - Contact Details: List of key contacts and authorized representatives 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

Purchase Agreement

Cost

Free to use
Relevant legal definitions
Relevant Industries

Manufacturing

Retail

Technology

Construction

Oil & Gas

Healthcare

Automotive

Electronics

FMCG

Industrial Equipment

Telecommunications

Pharmaceuticals

Food & Beverage

Logistics

Energy

Relevant Teams

Procurement

Legal

Finance

Supply Chain

Operations

Commercial

Compliance

Risk Management

Vendor Management

Contract Administration

Relevant Roles

Procurement Manager

Supply Chain Director

Commercial Director

Legal Counsel

Contract Manager

Chief Financial Officer

Operations Manager

Purchasing Officer

Supply Chain Analyst

Vendor Manager

Commercial Manager

Business Development Manager

General Manager

Compliance Officer

Finance Manager

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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