Agreement Of Purchase And Sale Form Template for Saudi Arabia

The Agreement of Purchase and Sale Form is a fundamental legal document used in Saudi Arabian commercial transactions to formalize the transfer of goods, assets, or property between parties. This document is essential when conducting business in Saudi Arabia, as it must comply with both Sharia law principles and the kingdom's commercial regulations, including the Commercial Court Law (Royal Decree No. M/32) and related statutes. The agreement is designed to protect both parties' interests while ensuring the transaction meets all legal requirements, including proper documentation of the sale price, payment terms, delivery conditions, and warranties. It's particularly important that the document addresses Islamic finance principles and avoids any elements that could be considered non-compliant with Sharia law, such as uncertain terms (gharar) or usury (riba).

1. Parties: Identifies and provides full details of the seller and purchaser, including registration numbers and addresses

2. Background: Provides context for the agreement and establishes the intention of the parties to enter into a sale transaction

3. Definitions: Defines key terms used throughout the agreement for clarity and precision

4. Subject Matter of Sale: Detailed description of the goods or property being sold, including specifications and quantity

5. Purchase Price: Specifies the agreed price, payment terms, method of payment, and any applicable taxes

6. Delivery: Details of delivery arrangements, timing, location, and responsibility for costs

7. Title and Risk: Specifies when ownership and risk transfer from seller to purchaser

8. Seller's Warranties: Warranties regarding ownership, quality, and condition of the goods/property

9. Purchaser's Warranties: Warranties regarding authority to enter into agreement and ability to pay

10. Inspection and Acceptance: Process for inspecting goods and accepting or rejecting delivery

11. Termination: Circumstances under which the agreement can be terminated and consequences

12. Force Majeure: Provisions for unforeseen circumstances preventing performance

13. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and applicable law

14. Notices: How formal communications between parties should be made and delivered

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