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Seller Financing Contract Template for United Arab Emirates

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Key Requirements PROMPT example:

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."

Document background
The Seller Financing Contract is utilized in the UAE when traditional bank financing is either not preferred or not available, allowing sellers to directly finance the purchase of their assets. This arrangement is particularly common in real estate, equipment sales, and vehicle transactions within the UAE market. The document must comply with UAE federal laws, including the Civil Code and Commercial Transactions Law, while potentially incorporating Sharia-compliant structures. The agreement typically includes detailed provisions for the sale, financing terms, security arrangements, and enforcement mechanisms, all structured within the UAE legal framework. This contract type is especially valuable for businesses looking to expand their sales by offering internal financing options while maintaining security over the sold assets until full payment is received.
Suggested Sections

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

Optional Sections

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

Suggested Schedules

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

Alex Denne

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

Relevant legal definitions








































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Relevant Industries

Real Estate

Manufacturing

Automotive

Industrial Equipment

Construction

Retail

Technology

Agriculture

Transportation

Energy

Relevant Teams

Legal

Finance

Sales

Credit & Risk

Treasury

Commercial

Operations

Compliance

Business Development

Asset Management

Relevant Roles

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

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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