Simple Promise To Pay Agreement Template for Saudi Arabia

The Simple Promise To Pay Agreement is a fundamental legal document used in Saudi Arabia when one party needs to formally acknowledge and commit to a payment obligation to another party. This document is particularly useful in situations where an existing debt needs to be formalized, payment terms need to be restructured, or when documenting new payment obligations. It must comply with both Saudi commercial law and Shariah principles, particularly regarding the treatment of interest and payment terms. The agreement is commonly used in business transactions, loan restructuring, and commercial dealings where parties need a clear, enforceable document outlining payment commitments. It includes essential details such as the amount owed, payment schedule, parties' information, and consequences of default, all structured within the framework of Saudi Arabian legal requirements.

1. Parties: Identification of the debtor and creditor with full legal names and addresses

2. Background: Brief context of the debt obligation and its origin

3. Definitions: Key terms used in the agreement

4. Acknowledgment of Debt: Clear statement of the debt amount and confirmation of its validity

5. Payment Terms: Details of payment schedule, method, and currency

6. Representations and Warranties: Debtor's confirmation of ability to pay and validity of obligation

7. Events of Default: Circumstances constituting default and consequences

8. Notices: How formal communications between parties should be made

9. Governing Law and Jurisdiction: Confirmation of Saudi law application and Shariah compliance

10. Execution: Signature blocks and execution requirements