Bona Fide Sales Contract

Bona Fide Sales Contract Template for United Arab Emirates

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Key Requirements PROMPT example:

"I need a Bona Fide Sales Contract under UAE law for the sale of commercial textiles worth AED 500,000, with monthly deliveries starting from March 2025 to our Dubai warehouse, including quality inspection provisions and payment in installments."

Document background

The Bona Fide Sales Contract is a fundamental commercial document used in the United Arab Emirates for formalizing sales transactions between parties. It serves as a legally binding agreement that details the essential elements of a sale, including product specifications, pricing, delivery terms, and warranty provisions. This document type is particularly important in the UAE business environment, where it must comply with both the UAE Civil Code and Commercial Transactions Law, while potentially also considering Sharia principles. The contract is suitable for both domestic and international trade transactions, providing a clear framework for rights, obligations, and remedies available to the parties. It can be used for various transaction types, from simple one-time sales to complex recurring supply arrangements, and is adaptable to different industry requirements while maintaining its core legal integrity.

Suggested Sections

1. Parties: Identification of seller and buyer with full legal names, addresses, and registration details

2. Background: Context of the sale and brief description of the transaction

3. Definitions: Key terms used throughout the agreement

4. Sale and Purchase: Core agreement to sell and purchase, including detailed description of goods

5. Price and Payment: Purchase price, payment terms, method of payment, and currency

6. Delivery: Delivery terms, timing, location, and transfer of risk

7. Title and Risk: Transfer of ownership and risk in the goods

8. Warranties and Representations: Standard warranties regarding ownership, quality, and condition of goods

9. Inspection and Acceptance: Rights and procedures for inspecting and accepting the goods

10. Term and Termination: Duration of agreement and circumstances for termination

11. Governing Law and Jurisdiction: Confirmation of UAE law and jurisdiction

12. Force Majeure: Events beyond parties' control affecting performance

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

14. General Provisions: Standard boilerplate clauses including entire agreement, amendments, and severability

Optional Sections

1. Quality Assurance: Detailed quality standards and testing procedures, necessary for technical or specialized goods

2. Insurance: Insurance requirements, recommended for high-value goods or international sales

3. Intellectual Property: IP rights and licenses, needed if goods involve patents, trademarks, or other IP

4. Confidentiality: Non-disclosure obligations, important for sensitive commercial transactions

5. After-Sales Service: Maintenance and support terms, relevant for technical equipment or ongoing service requirements

6. Export/Import Controls: Compliance with trade regulations, necessary for international sales

7. Training and Documentation: Requirements for technical training or documentation, relevant for complex equipment

8. Change Control: Procedures for changing specifications, useful for custom-made goods

Suggested Schedules

1. Schedule 1 - Specification of Goods: Detailed technical specifications and descriptions of the goods

2. Schedule 2 - Pricing Schedule: Detailed breakdown of prices, including any volume discounts or price adjustment mechanisms

3. Schedule 3 - Delivery Schedule: Detailed delivery timelines and milestones

4. Schedule 4 - Quality Standards: Specific quality requirements and testing procedures

5. Schedule 5 - Warranty Terms: Detailed warranty terms and procedures

6. Appendix A - Required Documents: List of documents required for the transaction (e.g., certificates of origin, quality certificates)

7. Appendix B - Form of Acceptance Certificate: Template for formal acceptance of goods

8. Appendix C - Technical Documentation: Operating manuals, maintenance procedures, and other technical documents

Authors

Alex Denne

Head of Growth (Open Source Law) @ ��Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co

Relevant legal definitions

Clauses

Relevant Industries

Retail

Manufacturing

Technology

Automotive

Construction

Consumer Goods

Industrial Equipment

Electronics

Fashion and Luxury

Food and Beverage

Medical Equipment

Raw Materials

Energy

Telecommunications

Relevant Teams

Legal

Commercial

Procurement

Sales

Operations

Compliance

Supply Chain

Business Development

Finance

Risk Management

Relevant Roles

Legal Counsel

Commercial Director

Procurement Manager

Sales Manager

Contract Administrator

Business Development Manager

Supply Chain Manager

Operations Manager

General Manager

Chief Commercial Officer

Legal Director

Compliance Officer

Trade Finance Manager

Chief Executive Officer

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Authors

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