Simple Promise To Pay Letter Template for Saudi Arabia

The Simple Promise To Pay Letter is a fundamental financial document used in Saudi Arabian business and personal transactions when one party needs to formally acknowledge and commit to paying a debt to another party. It serves as a legally binding commitment that can be enforced through Saudi courts and must be structured to comply with both civil law requirements and Sharia principles. This document is particularly useful in situations where there's an existing debt that needs to be formally acknowledged, during debt restructuring, or in business transactions where payment terms need to be clearly documented. The letter typically includes the exact amount owed, payment terms, debtor and creditor details, and must be properly authenticated according to Saudi legal requirements. It's essential that the document avoids any interest-based elements to maintain Sharia compliance while ensuring legal enforceability.

1. Letter Date and Place: Clear statement of when and where the letter is executed

2. Parties' Information: Full legal names, addresses, and identification numbers of both the debtor and creditor

3. Debt Acknowledgment: Clear statement acknowledging the exact amount owed and its origin

4. Payment Terms: Specific details of how and when the payment will be made

5. Late Payment Provisions: Consequences of late payment (avoiding interest but including permissible compensation)

6. Legal Declaration: Statement confirming this is a legally binding promise under Saudi law

7. Signature Block: Space for signature, name, and official stamp if applicable