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The Sale And Buy Back Agreement is a crucial document in Saudi Arabian commercial and Islamic finance practice, commonly used for financing arrangements that need to comply with Sharia law principles. It is particularly relevant when parties seek to structure financing transactions without conventional interest-bearing loans. The document is used across various sectors including banking, real estate, and manufacturing, where temporary transfer of asset ownership is needed for financing purposes. The agreement must comply with Saudi Arabian commercial law, Capital Market Authority regulations (where applicable), and Islamic finance principles. It includes comprehensive provisions covering asset transfer, pricing mechanisms, risk allocation, and regulatory compliance. This type of agreement is particularly important in Saudi Arabia's Islamic finance framework, where conventional financing methods may not be permissible.

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

2. Background: Context of the agreement, relationship between parties, and general purpose of the transaction

3. Definitions: Definitions of key terms used throughout the agreement, including Asset, Purchase Price, Buyback Price, and Completion Date

4. Sale of Asset: Details of the initial sale transaction, including asset description, purchase price, and transfer mechanics

5. Completion of Initial Sale: Conditions precedent, timing, and mechanics for completing the initial sale

6. Buyback Agreement: Terms of the buyback transaction, including price and timing

7. Completion of Buyback: Conditions precedent, timing, and mechanics for completing the buyback

8. Representations and Warranties: Statements of fact and assurances from both parties regarding their capacity, authority, and the asset

9. Covenants: Ongoing obligations of the parties during the period between sale and buyback

10. Risk and Insurance: Allocation of risk and responsibility for insurance during the interim period

11. Default and Termination: Events of default, consequences, and termination rights

12. Governing Law and Jurisdiction: Specification of Saudi law as governing law and jurisdiction for disputes

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

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