Document background
This Installment Purchase Agreement template is designed for use in Saudi Arabia when parties wish to structure the sale of assets through periodic payments rather than a single lump sum. The document is particularly relevant for significant purchases where buyers require payment flexibility and sellers need security for extended payment terms. It incorporates essential elements required by Saudi law, including Sharia-compliant financing provisions, clear ownership transfer mechanics, and consumer protection measures. The agreement is commonly used across various sectors, from vehicle sales to industrial equipment purchases, and must comply with both the Saudi Civil Code and relevant commercial regulations. It includes specific provisions for default management, asset maintenance, and warranty terms, while ensuring all financial aspects align with Islamic banking principles.
