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The Deferred Payment Agreement is a crucial document in Saudi Arabian commercial and Islamic finance transactions, used when parties wish to structure a purchase with payments spread over time in a Sharia-compliant manner. This agreement is particularly relevant in commercial transactions where immediate full payment is not feasible or desirable, but the arrangement must comply with Islamic finance principles prohibiting conventional interest. The document includes detailed payment schedules, security arrangements, and enforcement mechanisms, all structured to comply with both Saudi commercial law and Shariah requirements. It's commonly used in trade finance, asset purchases, and commercial transactions across various sectors, providing a legally sound framework for deferred payment arrangements while maintaining Shariah compliance under Saudi jurisdiction.

1. Parties: Identification of the parties entering into the agreement, including their full legal names, addresses, and registration details

2. Background: Context of the transaction, commercial purpose, and confirmation of Sharia compliance

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

4. Sale and Purchase: Details of the underlying transaction and assets being sold

5. Purchase Price and Payment Terms: Specification of the total purchase price, payment schedule, and deferred payment structure

6. Conditions Precedent: Conditions that must be satisfied before the agreement becomes effective

7. Representations and Warranties: Statements of fact and assurances from both parties

8. Covenants: Ongoing obligations of the parties during the term of the agreement

9. Security: Details of any security arrangements supporting the deferred payments

10. Events of Default: Circumstances constituting default and consequences thereof

11. Termination: Circumstances and procedures for terminating the agreement

12. Governing Law and Jurisdiction: Confirmation of Saudi law governance and jurisdiction of Saudi courts

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

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