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The Conditional Sale Agreement is a vital legal instrument in Saudi Arabian commerce, particularly useful for high-value transactions where immediate full payment isn't practical or desired. This document type combines elements of traditional sale agreements with specific conditions that must be met before ownership transfers to the purchaser, all while maintaining compliance with Islamic finance principles and Saudi commercial law. It's commonly used in asset financing, equipment purchases, and property transactions, providing security for sellers while offering purchasers a structured path to ownership. The agreement must carefully balance commercial interests with Sharia requirements, making it distinct from conventional conditional sale agreements in other jurisdictions. It's essential for businesses operating in Saudi Arabia to understand that this document must incorporate both modern commercial practices and Islamic financial principles.

1. Parties: Identification of seller and purchaser with full legal names and addresses

2. Background: Context of the sale and brief description of the asset/property being sold

3. Definitions: Key terms used throughout the agreement including Asset, Purchase Price, Completion Date, etc.

4. Sale and Purchase: Core terms of the conditional sale including price, payment terms and Sharia-compliance statement

5. Conditions for Transfer of Ownership: Specific conditions that must be met for ownership to transfer to the purchaser

6. Payment Terms: Detailed payment schedule, method of payment, and consequences of late payment

7. Seller's Representations and Warranties: Seller's declarations regarding ownership, condition and quality of the asset

8. Purchaser's Representations and Warranties: Purchaser's declarations regarding financial capacity and understanding of terms

9. Risk and Insurance: Allocation of risk and insurance requirements during the conditional period

10. Default and Remedies: Consequences of default and available remedies for both parties

11. Registration and Documentation: Requirements for registration and documentation of the sale

12. Notices: Process and requirements for formal communications between parties

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