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Seller Financing Contract
"I need a Seller Financing Contract for the sale of industrial manufacturing equipment worth AED 2.5 million, with monthly installments over 36 months starting March 2025, including specific maintenance obligations and insurance requirements."
1. Parties: Identification of the Seller/Financier and Buyer/Borrower with full legal names and addresses
2. Background: Context of the transaction, including description of the asset being sold and the agreement for seller financing
3. Definitions: Key terms used throughout the agreement, including financial terms, asset description, and legal concepts
4. Sale and Purchase: Core terms of the sale including asset description, purchase price, and transfer of ownership
5. Financing Terms: Details of the financing arrangement including principal amount, profit rate, payment schedule, and term
6. Security Arrangements: Description of security interests, mortgages, or other collateral securing the financing
7. Conditions Precedent: Prerequisites that must be satisfied before the agreement becomes effective
8. Representations and Warranties: Statements of fact and assurances from both parties regarding their capacity, authority, and the asset
9. Covenants: Ongoing obligations of both parties throughout the term of the financing
10. Events of Default: Circumstances constituting default and consequences thereof
11. Enforcement and Remedies: Rights and remedies available to parties in case of default or breach
12. General Provisions: Standard clauses including notices, amendments, governing law, and dispute resolution
1. Insurance Requirements: Detailed insurance obligations when the financed asset requires specific insurance coverage
2. Early Payment Provisions: Terms for early repayment or refinancing, included when early payment is permitted
3. Asset Maintenance: Requirements for maintaining the financed asset, particularly relevant for vehicles or equipment
4. Third Party Rights: Provisions regarding rights of third parties, needed when third party interests might exist
5. Assignment and Transfer: Terms for transferring rights under the agreement, included when transfer rights are contemplated
6. Force Majeure: Provisions for unforeseen circumstances, particularly relevant for long-term financing arrangements
7. Sharia Compliance Declaration: Specific provisions ensuring compliance with Sharia principles, when required by parties
1. Payment Schedule: Detailed breakdown of payment amounts, dates, and profit calculations
2. Asset Description: Detailed technical description and specifications of the financed asset
3. Form of Security Documents: Templates for mortgage deeds, pledges, or other security documents
4. Condition Report: Detailed report on the condition of the asset at the time of sale
5. Required Insurance Specifications: Detailed insurance requirements and minimum coverage levels
6. Form of Transfer Documents: Templates for asset transfer documentation
7. Authorized Signatories: List of authorized representatives for both parties
Authors
Real Estate
Manufacturing
Automotive
Industrial Equipment
Construction
Retail
Technology
Agriculture
Transportation
Energy
Legal
Finance
Sales
Credit & Risk
Treasury
Commercial
Operations
Compliance
Business Development
Asset Management
Chief Financial Officer
Finance Director
Legal Counsel
Commercial Director
Sales Manager
Credit Manager
Risk Manager
Treasury Manager
Contracts Manager
Business Development Manager
Asset Manager
Operations Director
Company Secretary
Compliance Officer
Financial Controller
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