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Agreement Of Sale Contract Template for United Arab Emirates

A comprehensive legal document governed by UAE law that formalizes the transfer of ownership of goods, assets, or property from a seller to a buyer. This agreement outlines the essential elements of the sale including the purchase price, payment terms, delivery conditions, and warranties, while ensuring compliance with UAE Civil Code and Commercial Transactions Law. It incorporates specific provisions for risk transfer, title passage, and dispute resolution mechanisms in accordance with UAE legal requirements, making it suitable for both commercial and private transactions within the UAE jurisdiction.

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What is a Agreement Of Sale Contract?

The Agreement of Sale Contract is a fundamental legal instrument used in the United Arab Emirates for documenting the transfer of ownership of goods, assets, or property. This document is essential for both business-to-business and private transactions, providing a legally binding framework under UAE law. It should be used whenever there is a need to formalize a sale transaction, whether for movable or immovable property, ensuring compliance with the UAE Civil Code (Federal Law No. 5 of 1985) and Commercial Transactions Law (Federal Law No. 18 of 1993). The agreement typically includes detailed specifications of the sale items, price, payment terms, delivery arrangements, warranties, and risk transfer provisions. It's particularly important in the UAE context as it helps ensure that transactions meet local legal requirements and provides clear recourse in case of disputes.

What sections should be included in a Agreement Of Sale Contract?

1. Parties: Identifies the seller and buyer with full legal names, addresses, and registration details if companies

2. Background: Contextual information about the transaction and the parties' intentions

3. Definitions: Defines key terms used throughout the agreement

4. Sale and Purchase: Core provision stating the seller's agreement to sell and buyer's agreement to purchase

5. Description of Sale Items: Detailed description of the goods or property being sold

6. Purchase Price: States the price and currency of the sale

7. Payment Terms: Details of how and when payment will be made, including any installments

8. Delivery: Terms and conditions of delivery, including timing and location

9. Title and Risk: When ownership and risk transfers from seller to buyer

10. Seller's Warranties: Warranties regarding ownership, condition, and quality of sale items

11. Buyer's Warranties: Warranties from the buyer, typically regarding authority to enter agreement

12. Termination: Circumstances under which the agreement can be terminated

13. Governing Law and Jurisdiction: Confirms UAE law governs and specifies jurisdiction for disputes

14. Execution: Signature blocks and execution formalities

What sections are optional to include in a Agreement Of Sale Contract?

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

2. Due Diligence: Include when buyer has right to conduct investigations before completion

3. Intellectual Property: Required when sale includes IP rights

4. Confidentiality: Include when sensitive information is exchanged

5. Non-Competition: Used in business sales to protect goodwill

6. Tax Provisions: Include detailed tax arrangements when significant tax implications exist

7. Force Majeure: Include when needed to address unforeseen circumstances

8. Insurance: Include when specific insurance requirements apply during transition

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

10. Arbitration: Include when parties prefer arbitration over court litigation

What schedules should be included in a Agreement Of Sale Contract?

1. Schedule 1 - Asset List: Detailed inventory of all assets included in the sale

2. Schedule 2 - Specifications: Technical specifications of goods being sold

3. Schedule 3 - Payment Schedule: Detailed payment terms if involving installments

4. Schedule 4 - Delivery Schedule: Detailed delivery timeline if multiple deliveries

5. Schedule 5 - Form of Transfer Documents: Templates of any transfer documentation required

6. Schedule 6 - Excluded Items: List of items specifically excluded from the sale

7. Appendix A - Required Approvals: List of regulatory or third-party approvals needed

8. Appendix B - Due Diligence Documents: List of documents provided for due diligence

Authors

Alex Denne

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

Publisher

Genie AI

Document Type

Buy-Sell Agreement

Cost

Free to use

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