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Conditional Sales Contract Template for United Arab Emirates

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Key Requirements PROMPT example:

Conditional Sales Contract

"I need a Conditional Sales Contract for selling industrial manufacturing equipment worth AED 2.5 million to a Dubai-based company, with ownership transfer after completion of 12 monthly installments starting March 2025, including installation and training provisions."

Document background
The Conditional Sales Contract is commonly used in the UAE for high-value asset sales where the seller wishes to maintain ownership until certain conditions are met, most commonly full payment of the purchase price. This document type is essential for businesses engaged in selling equipment, vehicles, or other valuable assets on an installment basis or subject to specific performance conditions. The contract must comply with UAE Civil Code (Federal Law No. 5 of 1985) and Commercial Transactions Law (Federal Law No. 18 of 1993), while also considering Sharia principles where applicable. The document typically includes detailed provisions for payment terms, risk allocation, maintenance obligations, insurance requirements, and default remedies. A properly structured Conditional Sales Contract provides security for the seller while allowing the buyer to use the asset before full ownership transfer, making it particularly valuable in commercial and consumer transactions within the UAE market.
Suggested Sections

1. Parties: Identification of seller and buyer with full legal names and addresses

2. Background: Context of the transaction and brief description of the goods being sold

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

4. Sale and Purchase: Core agreement for the sale and purchase of the goods, including description and quantity

5. Purchase Price: Details of the purchase price, payment schedule, and payment methods

6. Conditions Precedent: Specific conditions that must be met before ownership transfers

7. Delivery and Acceptance: Terms regarding delivery, inspection, and acceptance of goods

8. Title and Risk: Provisions regarding when title passes and risk transfer

9. Seller's Warranties: Warranties regarding the goods, ownership, and authority to sell

10. Buyer's Obligations: Specific obligations of the buyer including payment and maintenance

11. Security Interest: Seller's security interest in the goods until conditions are met

12. Default and Remedies: Consequences of default and available remedies

13. Insurance: Requirements for insurance of goods during the conditional period

14. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction

15. Notices: Process for giving formal notices under the agreement

16. General Provisions: Standard boilerplate clauses including assignment, amendments, and severability

Optional Sections

1. Installation and Training: Required for complex equipment requiring installation or operator training

2. Maintenance Requirements: Specific maintenance obligations during the conditional period

3. Third-Party Rights: Required if third parties have rights or obligations under the contract

4. Export/Import Requirements: Necessary for international sales requiring specific documentation

5. Intellectual Property Rights: Required when the goods involve software or other IP rights

6. Return and Refund Policy: Detailed terms for consumer goods or when required by law

7. Sharia Compliance: Required when the transaction needs to comply with Islamic finance principles

Suggested Schedules

1. Schedule 1 - Description of Goods: Detailed technical specifications and description of the goods

2. Schedule 2 - Payment Schedule: Detailed breakdown of payment installments and due dates

3. Schedule 3 - Delivery Schedule: Specific delivery timelines and locations

4. Schedule 4 - Acceptance Tests: Criteria and procedures for acceptance testing if applicable

5. Schedule 5 - Warranty Terms: Detailed warranty terms and conditions

6. Schedule 6 - Maintenance Requirements: Detailed maintenance specifications and schedules

7. Appendix A - Required Documentation: List of required certificates, permits, and documentation

8. Appendix B - Form of Notice of Transfer: Template for formal transfer of title upon completion

Authors

Alex Denne

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

Relevant legal definitions




































Clauses

























Relevant Industries

Automotive

Industrial Equipment

Construction Equipment

Consumer Electronics

Manufacturing

Heavy Machinery

Real Estate

Retail

Technology

Agricultural Equipment

Medical Equipment

Aviation

Relevant Teams

Legal

Sales

Finance

Compliance

Risk Management

Operations

Commercial

Credit Control

Business Development

Contract Administration

Relevant Roles

Legal Counsel

Commercial Director

Sales Manager

Finance Manager

Credit Controller

Compliance Officer

Risk Manager

Contract Administrator

Business Development Manager

Operations Manager

Chief Financial Officer

General Counsel

Sales Director

Asset Manager

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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