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Bill Of Sale With Promissory Note For Automobile Template for United Arab Emirates

This document serves as a comprehensive legal instrument combining a Bill of Sale and Promissory Note for automobile transactions in the United Arab Emirates. It follows UAE Federal Law requirements, particularly the Civil Code and Commercial Transactions Law, while incorporating RTA regulations for vehicle transfers. The document establishes the terms of sale, transfer of ownership, and structured payment arrangements through a legally binding promissory note. It includes detailed vehicle specifications, payment terms, warranties, and necessary provisions for proper registration and transfer under UAE law.

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What is a Bill Of Sale With Promissory Note For Automobile?

The Bill Of Sale With Promissory Note For Automobile is a specialized legal document designed for use in the United Arab Emirates when selling a vehicle with deferred payment arrangements. This document type combines the essential elements of a traditional bill of sale with a legally binding promissory note, ensuring both the transfer of vehicle ownership and the establishment of payment obligations. It is particularly useful for dealerships, financial institutions, and private sellers who wish to offer flexible payment terms while maintaining legal protection. The document must comply with UAE Federal Laws, including the Civil Code, Commercial Transactions Law, and RTA regulations. It includes comprehensive details about the vehicle, payment schedule, warranties, and transfer requirements, making it suitable for both commercial and private vehicle sales where immediate full payment is not made.

What sections should be included in a Bill Of Sale With Promissory Note For Automobile?

1. Parties: Identification of the Seller and Buyer with full legal names, Emirates ID numbers, and contact details as required by UAE law

2. Background: Brief context of the transaction and relationship between parties

3. Definitions: Key terms used in the agreement including 'Vehicle', 'Purchase Price', 'Promissory Note', and 'Transfer Date'

4. Vehicle Details: Comprehensive description of the automobile including make, model, year, VIN, color, mileage, and registration number

5. Sale Terms: Terms of the sale including purchase price, payment structure, and delivery details

6. Promissory Note Terms: Details of the promissory note including payment schedule, interest (if applicable under UAE law), and maturity date

7. Seller's Representations: Seller's warranties about vehicle ownership, condition, and absence of liens

8. Transfer of Title: Process and requirements for transferring vehicle ownership through RTA

9. Governing Law: Specification of UAE law as governing law and jurisdiction

10. Execution: Signature blocks for both parties with attestation requirements

What sections are optional to include in a Bill Of Sale With Promissory Note For Automobile?

1. Vehicle Inspection Report: Detailed report of vehicle condition, recommended when selling used vehicles

2. Insurance Requirements: Specific insurance requirements and responsibilities, important when there's a gap between sale and transfer

3. Default and Remedies: Additional details on consequences of payment default, recommended for higher-value transactions

4. Arbitration Clause: Alternative dispute resolution procedure, optional but recommended for high-value sales

5. Language Provision: Clause specifying prevailing language if document is bilingual Arabic/English

6. Assignment: Provisions regarding ability to assign rights under the agreement, important for commercial transactions

What schedules should be included in a Bill Of Sale With Promissory Note For Automobile?

1. Schedule A - Vehicle Specifications: Detailed technical specifications and features of the vehicle

2. Schedule B - Payment Schedule: Detailed breakdown of payment installments with dates and amounts

3. Schedule C - Vehicle Condition Report: Comprehensive report on vehicle condition including photographs

4. Appendix 1 - Promissory Note: The actual promissory note document complying with UAE Commercial Transactions Law

5. Appendix 2 - Required RTA Documents: Copies of required RTA transfer documents and forms

6. Appendix 3 - Vehicle Service History: Documentation of vehicle maintenance and service history

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

Promissory Note

Sector

Banking

Cost

Free to use

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