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The Deferred Purchase Agreement is a specialized contract used in Saudi Arabia for transactions where the purchase price is paid in installments over time, structured to comply with Islamic Sharia principles and Saudi Arabian law. This document is particularly useful for asset financing, large equipment purchases, or real estate transactions where immediate full payment is not feasible or desired. It includes comprehensive provisions for payment terms, security arrangements, and asset transfer while ensuring compliance with Islamic finance principles that prohibit conventional interest (riba). The agreement is designed to meet requirements set by Saudi Arabian regulatory authorities, including SAMA guidelines and commercial court requirements, making it suitable for both financial institutions and corporate entities engaged in significant asset purchases.

1. Parties: Identification of the seller and purchaser, including full legal names and addresses

2. Background: Context of the agreement and brief description of the transaction structure

3. Definitions: Definitions of key terms used throughout the agreement, including Islamic finance terms

4. Sale and Purchase: Core terms of the sale including asset description, purchase price, and confirmation of Sharia compliance

5. Payment Terms: Detailed structure of the deferred payment arrangement, including payment schedule and amounts

6. Delivery and Transfer of Title: Terms regarding asset delivery and transfer of ownership

7. Representations and Warranties: Standard and Sharia-specific representations and warranties from both parties

8. Covenants: Ongoing obligations of both parties during the payment period

9. Security: Security arrangements to protect the seller's rights until full payment

10. Events of Default: Circumstances constituting default and consequences

11. Termination: Circumstances and process for early termination

12. Governing Law and Jurisdiction: Confirmation of Saudi law governance and jurisdiction of Saudi courts

13. Notices: Process for formal communications between parties

14. Execution: Signature blocks and execution formalities