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Credit Sale Agreement for United Arab Emirates

Credit Sale Agreement Template for United Arab Emirates

A comprehensive legal agreement governed by UAE law that facilitates the sale of goods or assets where the purchase price is paid in installments over time. The agreement incorporates provisions compliant with UAE Federal Laws, including the Civil Code and Commercial Code, and may include elements of Islamic finance principles. It details the terms of sale, payment obligations, security arrangements, and rights and obligations of both parties, while ensuring compliance with UAE Central Bank regulations on credit facilities and consumer protection requirements.

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Credit Sale Agreement

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What is a Credit Sale Agreement?

The Credit Sale Agreement is a vital commercial document used in the United Arab Emirates when selling goods or assets on credit terms, allowing buyers to pay the purchase price in installments while protecting the seller's interests. This agreement type is particularly relevant in the UAE market where credit sales are common across various sectors, from automotive to industrial equipment. The document must comply with UAE Federal Law No. 5 of 1985 (Civil Code), Federal Law No. 18 of 1993 (Commercial Code), and Central Bank regulations regarding credit facilities. It typically includes detailed terms about the goods, payment schedule, security arrangements, and default provisions, while often incorporating elements of Islamic finance to ensure broader market acceptability. The agreement serves as a crucial tool for businesses operating in the UAE to facilitate sales while managing credit risk and ensuring legal enforceability.

What sections should be included in a Credit Sale Agreement?

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

2. Background: Context of the transaction, relationship between parties, and purpose of the credit sale

3. Definitions and Interpretation: Definitions of key terms, interpretation rules, and currency conventions

4. Sale and Purchase: Details of the goods/assets being sold, including specifications and delivery terms

5. Purchase Price and Payment Terms: Total price, down payment, installment amounts, payment schedule, and interest/profit rate

6. Security: Security arrangements, including retention of title and any additional collateral requirements

7. Representations and Warranties: Statements of fact and assurances from both parties regarding their capacity and the transaction

8. Buyer's Obligations: Key obligations including payments, maintenance of goods, insurance requirements

9. Seller's Obligations: Obligations regarding delivery, warranty, after-sale service

10. Default and Consequences: Events of default, remedies, acceleration rights

11. Termination: Circumstances allowing termination and consequences

12. Governing Law and Jurisdiction: UAE law as governing law and jurisdiction of UAE courts

13. Notices: Process and addresses for formal communications between parties

14. Execution: Signature blocks and execution formalities

What sections are optional to include in a Credit Sale Agreement?

1. Islamic Finance Compliance: Required when the agreement needs to comply with Shariah principles, including specific terminology and structure

2. Insurance: Detailed insurance requirements when the value or nature of goods requires specific insurance coverage

3. Assignment: Include when either party may need to transfer rights or obligations

4. Third Party Rights: Include when third parties may have enforcement rights under the agreement

5. Force Majeure: Include for high-value transactions or where delivery timing is critical

6. Entire Agreement: Include when there are previous agreements or negotiations that need to be superseded

7. Language: Include when dual language versions are provided, specifying which version prevails

What schedules should be included in a Credit Sale Agreement?

1. Schedule 1 - Description of Goods: Detailed specifications of goods being sold

2. Schedule 2 - Payment Schedule: Detailed breakdown of installment amounts and due dates

3. Schedule 3 - Delivery Terms: Specific delivery requirements, locations, and timelines

4. Schedule 4 - Form of Transfer of Title: Template for transfer of title documentation

5. Schedule 5 - Security Documents: Forms of any security documents required

6. Appendix A - Condition Report: Initial condition report for goods (if applicable)

7. Appendix B - Warranty Terms: Detailed warranty terms and conditions

8. Appendix C - Insurance Requirements: Specific insurance requirements and minimum coverage

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

Publisher

Ƶ

Document Type

Sales Agreement

Sector

Sales

Cost

Free to use
Relevant legal definitions




















































Clauses




































Relevant Industries

Automotive

Industrial Equipment

Consumer Electronics

Heavy Machinery

Construction Equipment

Medical Equipment

Office Equipment

Furniture and Fixtures

Agricultural Equipment

Manufacturing

Retail

Technology

Healthcare

Relevant Teams

Legal

Finance

Sales

Risk Management

Compliance

Commercial

Credit Control

Treasury

Operations

Collections

Business Development

Relevant Roles

Legal Counsel

Credit Manager

Finance Director

Sales Manager

Risk Manager

Compliance Officer

Commercial Director

Contract Administrator

Chief Financial Officer

Treasury Manager

Collections Manager

Business Development Manager

Operations Manager

Credit Analyst

Financial Controller

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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