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Non Refundable Payment Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Non Refundable Payment Agreement

"I need a Non-Refundable Payment Agreement under Saudi law for a real estate development project, where the client will make an advance payment of 500,000 SAR by March 2025 to secure exclusive development rights for a commercial property in Riyadh."

Document background
The Non-Refundable Payment Agreement is utilized in Saudi Arabian business transactions where one party makes a payment to another with the explicit understanding that the amount cannot be recovered, regardless of subsequent events or circumstances. This document type is commonly used in scenarios such as booking fees, reservation deposits, advance payments for services, or commitment fees in commercial transactions. The agreement must carefully balance the commercial interests of the parties while ensuring compliance with Saudi Arabian law and Sharia principles, which govern all commercial transactions in the Kingdom. It typically includes specific provisions about the purpose of the payment, acknowledgment of its non-refundable nature, and the circumstances under which the payment is made, while ensuring the arrangement does not conflict with Islamic financial principles regarding uncertainty (gharar) or unjust enrichment.
Suggested Sections

1. Parties: Identification and details of the parties entering into the agreement

2. Background: Context of the agreement and the purpose of the non-refundable payment

3. Definitions: Key terms used throughout the agreement

4. Payment Terms: Details of the payment amount, method, and timing

5. Non-Refundable Nature: Clear statement and explanation of the non-refundable nature of the payment

6. Purpose of Payment: Specific purpose for which the payment is being made

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

8. Acknowledgments: Explicit acknowledgment of the non-refundable nature by the paying party

9. Force Majeure: Circumstances beyond parties' control that may affect the agreement

10. Governing Law and Jurisdiction: Confirmation of Saudi law application and jurisdiction

11. Notices: How formal communications between parties should be made

12. Entire Agreement: Confirmation that this document represents the complete agreement between parties

Optional Sections

1. Conditions Precedent: Any conditions that must be met before the payment becomes non-refundable - include if payment non-refundability is subject to specific conditions

2. Dispute Resolution: Specific procedures for resolving disputes - include if parties want to specify particular dispute resolution mechanisms

3. Confidentiality: Obligations regarding confidential information - include if sensitive information is involved

4. Assignment: Rights to assign the agreement to other parties - include if assignment rights are relevant

5. Termination: Circumstances under which the agreement can be terminated - include if there are ongoing obligations

6. Compliance with Sharia: Specific provisions ensuring Sharia compliance - include if explicit Sharia compliance confirmation is required

7. Tax Provisions: Treatment of taxes related to the payment - include if tax implications need to be addressed

8. Electronic Execution: Provisions for electronic signing - include if agreement will be executed electronically

Suggested Schedules

1. Payment Schedule: Detailed breakdown of payment amounts and timing if payment is to be made in installments

2. Required Documents: List of documents required to be submitted with the payment

3. Authorized Representatives: List of persons authorized to act on behalf of each party

4. Compliance Certificates: Any required certificates or documentation proving compliance with relevant regulations

5. Form of Notice: Template for formal notices under the agreement

6. Bank Details: Banking information for payment processing

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

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Relevant Industries

Real Estate

Construction

Professional Services

Technology

Manufacturing

Education

Healthcare

Retail

Hospitality

Financial Services

Energy

Telecommunications

Relevant Teams

Legal

Finance

Commercial

Operations

Compliance

Risk Management

Treasury

Sales

Business Development

Contract Administration

Relevant Roles

Legal Counsel

Contract Manager

Business Development Manager

Finance Director

Commercial Manager

Operations Manager

Project Manager

Compliance Officer

Chief Financial Officer

Risk Manager

Treasury Manager

Account Executive

Sales Director

General 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, 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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