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The Credit Sale Agreement is a fundamental document in Islamic finance transactions within Saudi Arabia, used when a seller (typically a financial institution) sells an asset to a buyer with payment to be made in installments over time. This structure is commonly used as an alternative to conventional interest-bearing loans, ensuring compliance with Islamic Shariah principles while providing financing solutions. The agreement must be drafted in accordance with Saudi Arabian law and SAMA regulations, incorporating specific provisions for profit calculation, payment terms, and security arrangements. It's particularly relevant for asset financing, equipment purchases, and real estate transactions where immediate full payment is not feasible. The document includes detailed sections covering asset description, payment schedules, security arrangements, and default provisions, all structured to ensure Shariah compliance while protecting the interests of all parties involved.

1. Parties: Identification of the seller/financial institution and the buyer/customer with full legal names and details

2. Background: Context of the agreement, including the nature of the credit sale and confirmation of Shariah compliance

3. Definitions: Key terms used throughout the agreement, including financial terms and Shariah-compliant concepts

4. Sale and Purchase: Core terms of the credit sale, including asset description, purchase price, and payment structure

5. Payment Terms: Detailed payment schedule, profit rate, and payment mechanics

6. Conditions Precedent: Prerequisites that must be satisfied before the agreement becomes effective

7. Representations and Warranties: Statements of fact and assurances from both parties

8. Covenants: Ongoing obligations of the parties during the term of the agreement

9. Security: Details of any security or collateral provided for the credit sale

10. Events of Default: Circumstances constituting default and consequences

11. Termination: Conditions and process for early termination

12. Governing Law and Jurisdiction: Confirmation of Saudi law application and dispute resolution mechanism

13. Notices: Communication procedures between parties

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