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The Partial Payment Installment Agreement is a crucial document used in Saudi Arabian business practice when parties need to formalize the structured repayment of an existing debt. This agreement type is particularly important in the Saudi context as it must comply with both Sharia law principles (avoiding conventional interest) and Saudi commercial regulations. It is commonly used when a debtor cannot make a full immediate payment and requires a formal arrangement for installment payments. The document typically includes detailed payment schedules, consequences of default, and any security arrangements, all structured to be enforceable under Saudi law. This agreement type is especially relevant in commercial transactions, real estate payments, and business restructuring situations where parties need to document and formalize payment arrangements while ensuring compliance with local legal and religious requirements.

1. Parties: Identification of all parties to the agreement, including full legal names, addresses, and registration details

2. Background: Context of the original debt and circumstances leading to this installment arrangement

3. Definitions: Key terms used throughout the agreement, including Payment Date, Installment Amount, Total Outstanding Amount

4. Acknowledgment of Debt: Clear statement of the total amount owed and debtor's acknowledgment of the debt

5. Payment Terms: Detailed structure of installment payments, including amount, frequency, and payment method

6. Payment Schedule: Specific dates and amounts for each installment payment

7. Method of Payment: Approved payment methods and banking details

8. Default and Remedies: Consequences of missing payments and creditor's rights in case of default

9. Representations and Warranties: Basic declarations by both parties regarding their capacity and authority

10. Governing Law: Confirmation of Saudi law and Sharia principles as governing law

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

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