Document background
The Letter of Sale Agreement is a fundamental commercial document used in Saudi Arabia when parties need to formalize a sale transaction in a concise yet legally robust manner. It serves as an alternative to more complex sale agreements when the transaction terms are relatively straightforward but still require formal documentation. This document type must comply with both Saudi commercial regulations and Sharia law principles, making it particularly important to include specific elements such as clear identification of the subject matter, definite pricing, and immediate transfer of ownership (unless otherwise specified). The Letter of Sale Agreement is commonly used in business-to-business transactions, asset sales, and commercial goods transfers where parties need a clear record of the transaction terms while maintaining simplicity in documentation.
