Installment Sales Contract for United Arab Emirates

Installment Sales Contract Template for United Arab Emirates

A comprehensive legal agreement governed by UAE law that facilitates the sale of goods through structured installment payments. The document outlines the terms and conditions for the purchase, including payment schedules, delivery arrangements, title retention, and buyer/seller obligations. It incorporates specific provisions compliant with UAE Civil Code and Commercial Transactions Law, addressing Islamic finance principles where applicable. The agreement includes robust protection mechanisms for both parties, detailing default remedies, warranty terms, and security arrangements while ensuring compliance with UAE Central Bank regulations on installment financing.

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What is a Installment Sales Contract?

The Installment Sales Contract is a vital legal instrument in the UAE business landscape, particularly suited for transactions involving significant purchases where immediate full payment is not practical or desired. This document type is structured to comply with UAE Civil Code (Federal Law No. 5 of 1985) and Commercial Transactions Law (Federal Law No. 18 of 1993), incorporating necessary provisions for Islamic finance principles and UAE Central Bank regulations. It is commonly used in both commercial and consumer contexts, providing a secure framework for sellers to maintain title until full payment while allowing buyers to acquire goods through manageable installments. The agreement includes comprehensive provisions for payment terms, delivery conditions, warranties, default remedies, and security arrangements, making it suitable for various sectors from automotive to industrial equipment sales.

What sections should be included in a Installment Sales Contract?

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

2. Background: Context of the sale, brief description of the goods, and purpose of the installment arrangement

3. Definitions: Key terms used throughout the agreement including 'Goods', 'Installments', 'Payment Schedule', 'Delivery Date'

4. Sale and Purchase: Core terms of the sale including description of goods, total purchase price, and confirmation of sale

5. Payment Terms: Details of installment structure, payment amounts, dates, and method of payment

6. Delivery and Acceptance: Terms regarding delivery of goods, inspection rights, and acceptance procedures

7. Title and Risk: Provisions regarding transfer of ownership, retention of title until full payment, and risk allocation

8. Seller's Warranties: Warranties regarding goods' quality, condition, and fitness for purpose

9. Buyer's Obligations: Key responsibilities including making timely payments and maintaining goods

10. Default and Remedies: Consequences of payment default, repossession rights, and other remedies

11. Insurance: Requirements for insurance coverage of goods during the installment period

12. Governing Law and Jurisdiction: Specification of UAE law application and jurisdiction for disputes

13. Notices: Process for formal communications between parties

14. Execution: Signature blocks and execution formalities

What sections are optional to include in a Installment Sales Contract?

1. Security Arrangements: Additional security measures such as guarantees or collateral, used for high-value transactions

2. Assignment Rights: Rights to assign the contract, particularly relevant for commercial transactions

3. Maintenance and Servicing: For goods requiring regular maintenance or servicing during the installment period

4. Early Payment Provisions: Terms for early settlement of installments, including any applicable discounts

5. Import/Export Provisions: For international sales requiring customs clearance and compliance

6. Installation Services: When the goods require professional installation or setup

7. Training and Support: For complex equipment requiring user training or ongoing support

What schedules should be included in a Installment Sales Contract?

1. Schedule 1 - Description of Goods: Detailed technical specifications, quantities, and characteristics of the goods

2. Schedule 2 - Payment Schedule: Detailed breakdown of installment amounts, due dates, and payment methods

3. Schedule 3 - Delivery Schedule: Specific delivery dates, locations, and special handling requirements

4. Schedule 4 - Warranty Terms: Detailed warranty conditions, exclusions, and claim procedures

5. Schedule 5 - Insurance Requirements: Specific insurance coverage requirements and minimum coverage amounts

6. Appendix A - Document Requirements: List of required documents for transfer of title and registration

7. Appendix B - Maintenance Schedule: Required maintenance procedures and schedules (if applicable)

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

Sales Agreement

Sector

Sales

Cost

Free to use
Relevant legal definitions
Relevant Industries

Automotive

Heavy Equipment

Industrial Machinery

Construction Equipment

Consumer Electronics

Furniture and Home Furnishings

Medical Equipment

Manufacturing Equipment

Agricultural Equipment

Real Estate

Retail

Technology

Relevant Teams

Legal

Finance

Sales

Commercial

Compliance

Risk Management

Operations

Credit Control

Business Development

Contract Administration

Relevant Roles

Commercial Director

Sales Manager

Legal Counsel

Contract Manager

Finance Manager

Credit Controller

Business Development Manager

Compliance Officer

Risk Manager

Operations Manager

Chief Financial Officer

Sales Director

General Counsel

Account 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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