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Conditional Contract for Saudi Arabia

Conditional Contract Template for Saudi Arabia

A Conditional Contract under Saudi Arabian law is a specialized legal agreement that establishes binding obligations subject to the fulfillment of specific conditions, either precedent or subsequent. This document incorporates both modern commercial practices and Islamic Sharia principles, ensuring compliance with Saudi Arabia's dual legal framework. It details the conditions that must be met, timelines for satisfaction, consequences of fulfillment or non-fulfillment, and the rights and obligations of all parties involved. The contract includes specific provisions for notifications, monitoring of condition satisfaction, and mechanisms for resolution in case of disputes, all within the context of Saudi Arabian legal requirements.

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What is a Conditional Contract?

The Conditional Contract is a vital legal instrument in Saudi Arabian business transactions where parties wish to create binding obligations that depend on the occurrence or non-occurrence of specific events or conditions. This document type is particularly relevant in complex commercial transactions, real estate developments, corporate acquisitions, and project financing where certain prerequisites must be met before full implementation. The contract must comply with both Saudi commercial regulations and Sharia principles, making it unique to the Saudi legal landscape. It includes comprehensive details about conditions precedent or subsequent, timeframes, notification requirements, and consequences of satisfaction or non-satisfaction of conditions. The document is commonly used when parties need to secure regulatory approvals, obtain financing, complete due diligence, or fulfill other specific requirements before proceeding with the main transaction.

What sections should be included in a Conditional Contract?

1. Parties: Identification of all contracting parties with full legal names and addresses

2. Background: Context of the agreement and brief description of the parties' intentions

3. Definitions: Definitions of key terms used throughout the contract

4. Conditions: Detailed description of all conditions precedent and/or subsequent that must be fulfilled

5. Timeline for Conditions: Specific timeframes within which conditions must be satisfied

6. Main Obligations: Core obligations of each party subject to the conditions

7. Consequences of Satisfaction: Effects and obligations that arise once conditions are satisfied

8. Consequences of Non-Satisfaction: Procedures and consequences if conditions are not met

9. Notifications: Process for notifying parties about satisfaction or non-satisfaction of conditions

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

11. Governing Law and Jurisdiction: Confirmation of Saudi law as governing law and jurisdiction for disputes

12. Sharia Compliance: Express confirmation of compliance with Islamic Sharia principles

13. Execution: Signature blocks and execution requirements

What sections are optional to include in a Conditional Contract?

1. Force Majeure: Used when parties want to address circumstances beyond their control that might affect the conditions

2. Confidentiality: Include when sensitive information will be exchanged during the conditional period

3. Assignment: Include when transfer of rights needs to be restricted or permitted

4. Third Party Rights: Include when third parties may have rights or obligations related to the conditions

5. Warranties and Representations: Include when specific assurances are needed regarding the conditions or underlying transaction

6. Insurance: Include when specific insurance requirements are needed during the conditional period

7. Dispute Resolution: Include when parties want to specify alternative dispute resolution methods before court litigation

8. Language: Include when contract will be executed in multiple languages to specify prevailing version

What schedules should be included in a Conditional Contract?

1. Schedule 1 - Condition Details: Detailed specifications of each condition and its requirements

2. Schedule 2 - Timeline: Detailed timeline for satisfaction of conditions with specific dates and deadlines

3. Schedule 3 - Required Documents: List of documents required to prove satisfaction of conditions

4. Schedule 4 - Form of Satisfaction Notice: Template for formal notification of condition satisfaction

5. Schedule 5 - Contact Details: Detailed contact information for notices and communications

6. Appendix A - Required Approvals: List of regulatory or third-party approvals needed

7. Appendix B - Compliance Checklist: Checklist for Sharia compliance requirements

8. Appendix C - Supporting Documents: Any additional documents referenced in the main agreement

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

Jurisdiction

Saudi Arabia

Publisher

Ƶ

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions













































Clauses








































Relevant Industries

Real Estate

Construction

Banking and Finance

Manufacturing

Energy

Technology

Healthcare

Telecommunications

Transportation

Retail

Mining

Education

Professional Services

Infrastructure Development

Islamic Finance

Relevant Teams

Legal

Compliance

Commercial

Operations

Finance

Risk Management

Business Development

Corporate Secretariat

Project Management

Executive Leadership

Procurement

Strategy

Corporate Affairs

Relevant Roles

Legal Counsel

Contract Manager

Business Development Manager

Project Manager

Commercial Director

Compliance Officer

Chief Legal Officer

Risk Manager

Corporate Secretary

General Counsel

Transaction Manager

Operations Director

Chief Executive Officer

Chief Financial Officer

Legal Director

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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