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Absolute Agreement Of Sale Template for Saudi Arabia

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Key Requirements PROMPT example:

Absolute Agreement Of Sale

"I need an Absolute Agreement of Sale for the purchase of a manufacturing facility in Riyadh, Saudi Arabia, with completion scheduled for March 15, 2025, including specific provisions for the transfer of associated machinery and equipment licenses."

Document background
The Absolute Agreement of Sale is a fundamental commercial document used in Saudi Arabia when parties wish to effect an immediate and complete transfer of ownership rights. This document is essential for transactions requiring clear documentation of ownership transfer, whether for real estate, goods, or other assets, and must comply with both Sharia law principles and Saudi Arabian commercial regulations. It is particularly important in situations where parties need to establish a clean break in ownership rights, without ongoing conditions or future obligations. The agreement includes comprehensive details about the sale object, parties involved, purchase price, and completion requirements, while ensuring compliance with local laws including the Commercial Transactions Law and relevant Islamic principles. This type of agreement is commonly used in both corporate and individual transactions where immediate transfer of title is required.
Suggested Sections

1. Parties: Identification of the seller and buyer with full legal names, addresses, and commercial registration details

2. Background: Context of the sale and confirmation that the seller is the legitimate owner of the property/goods being sold

3. Definitions: Key terms used throughout the agreement, including definition of the Property/Goods, Completion Date, and Purchase Price

4. Sale and Purchase: Core provision stating the absolute and immediate transfer of ownership from seller to buyer

5. Purchase Price: Detailed breakdown of the purchase price and payment terms

6. Completion: Requirements and process for completing the sale, including timing and delivery details

7. Seller's Warranties: Warranties regarding ownership, condition, and legal status of the sale object

8. Buyer's Warranties: Warranties regarding capacity to purchase and compliance with relevant laws

9. Tax Provisions: Treatment of VAT and other applicable taxes

10. Notices: Process for sending and receiving formal communications between parties

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

12. Execution: Signature blocks and execution requirements

Optional Sections

1. Conditions Precedent: Used when completion is subject to certain conditions being met

2. Due Diligence: Include when buyer requires period for investigation of the sale object

3. Installment Payments: Include when purchase price is to be paid in installments

4. Security Arrangements: Used when additional security for payment or performance is required

5. Third Party Consents: Include when sale requires approval from government or other third parties

6. Post-Completion Obligations: Used when parties have continuing obligations after completion

7. Non-Competition: Include for business sales where seller should be restricted from competing

8. Confidentiality: Used when sensitive information is exchanged during the transaction

Suggested Schedules

1. Property/Goods Description: Detailed description of the sale object including specifications, condition, and location

2. Title Documents: List of ownership documents and relevant certificates

3. Purchase Price Breakdown: Detailed breakdown of purchase price components and payment schedule

4. Completion Requirements: Checklist of documents and actions required for completion

5. Form of Transfer Documents: Templates of necessary transfer documentation

6. Existing Encumbrances: List of any existing charges or encumbrances on the sale object

7. Required Consents: List of required governmental or third-party approvals

8. Warranty Details: Detailed warranties and representations regarding the sale object

Authors

Alex Denne

Head of Growth (Open Source Law) @ 黑料视频 | 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

Real Estate

Manufacturing

Retail

Automotive

Construction

Technology

Agriculture

Healthcare

Education

Energy

Mining

Transportation

Professional Services

Industrial Equipment

Consumer Goods

Relevant Teams

Legal

Commercial

Finance

Procurement

Sales

Business Development

Compliance

Risk Management

Operations

Property Management

Asset Management

Corporate Secretariat

Executive Leadership

Relevant Roles

Legal Counsel

Commercial Director

Chief Executive Officer

Chief Financial Officer

Procurement Manager

Sales Manager

Business Development Manager

Contract Manager

Compliance Officer

Risk Manager

Property Manager

Asset Manager

Operations Director

General Manager

Company Secretary

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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