Installment Plan Contract Template for Saudi Arabia

The Installment Plan Contract is essential for businesses operating in Saudi Arabia that offer goods or services on a deferred payment basis. This document is specifically designed to comply with Saudi Arabian commercial law and Sharia principles, making it suitable for both commercial and consumer transactions. It's particularly relevant in today's market where financing options are increasingly important for both businesses and consumers. The contract includes crucial elements such as payment schedules, delivery terms, default provisions, and Islamic finance compliance declarations. It's structured to protect both the finance provider and the customer while ensuring adherence to Saudi Central Bank (SAMA) regulations and consumer protection laws. This type of contract is commonly used in retail, automotive, and equipment financing sectors, requiring careful consideration of both commercial and religious law aspects.

1. Parties: Identification of the finance provider and the customer, including full legal names and contact details

2. Background: Context of the agreement and confirmation of Sharia compliance

3. Definitions: Key terms used throughout the contract, including financial and technical terms

4. Subject Matter: Description of the goods/services being financed and their total cost

5. Payment Terms: Total amount, down payment, number of installments, and payment schedule

6. Delivery and Acceptance: Terms regarding delivery of goods/services and customer acceptance

7. Customer Obligations: Customer's responsibilities including payment obligations and maintenance requirements

8. Provider Obligations: Provider's responsibilities including warranty and support commitments

9. Islamic Finance Compliance: Specific provisions ensuring Sharia compliance

10. Default and Consequences: Events of default and resulting actions

11. Termination: Conditions and process for early termination

12. Governing Law and Jurisdiction: Confirmation of Saudi law application and dispute resolution process