Aircraft Purchase Agreement Template for Saudi Arabia

The Aircraft Purchase Agreement is a crucial document used when transferring ownership of aircraft in Saudi Arabia. It serves as the primary legal instrument governing the sale and purchase of aircraft, whether new from manufacturers or pre-owned. The agreement must comply with Saudi Arabian law, including Sharia principles and regulations set by the General Authority of Civil Aviation (GACA). It typically includes detailed provisions covering aircraft specifications, purchase price, payment terms, delivery conditions, warranties, and regulatory compliance. This document is essential for any aircraft acquisition in Saudi Arabia, requiring careful consideration of local aviation regulations, registration requirements, and international aviation standards. The agreement also needs to address specific Saudi requirements regarding aircraft ownership, transfer of title, and technical compliance certifications.

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

2. Background: Context of the transaction and brief description of the aircraft being sold

3. Definitions: Detailed definitions of technical and legal terms used throughout the agreement

4. Sale and Purchase: Core transaction terms including purchase price and basic description of the aircraft

5. Purchase Price and Payment Terms: Detailed breakdown of price, payment schedule, deposit requirements, and payment methods

6. Aircraft Condition and Specifications: Description of aircraft condition, specifications, and compliance with aviation standards

7. Pre-Delivery Inspection: Rights and procedures for aircraft inspection before delivery

8. Delivery and Acceptance: Terms and conditions for aircraft delivery, acceptance procedures, and transfer of title

9. Seller's Representations and Warranties: Warranties regarding aircraft condition, title, and compliance with regulations

10. Buyer's Representations and Warranties: Warranties regarding authority to purchase and compliance with regulations

11. Conditions Precedent: Conditions that must be satisfied before completion of the sale

12. Registration and Documentation: Requirements for aircraft registration and transfer of documentation

13. Risk and Insurance: Allocation of risk and insurance requirements during transaction period

14. Indemnification: Mutual indemnification provisions and liability limitations

15. Default and Termination: Events of default and termination rights

16. Governing Law and Dispute Resolution: Choice of Saudi law and dispute resolution mechanisms

17. Miscellaneous: Standard boilerplate provisions including notices, amendments, and severability