Document background
The Sale And Buy Back Agreement is commonly used in Pakistan as an alternative financing structure, particularly where conventional lending arrangements may not be suitable or desired. This document type is especially relevant when parties seek to arrange financing while ensuring compliance with Islamic finance principles under Pakistani law. The agreement details both the initial sale and subsequent buy-back of assets, typically used for substantial commercial or industrial assets, real estate, or equipment. It includes comprehensive provisions covering asset valuation, transfer mechanics, maintenance responsibilities, and risk allocation during the period between sale and buy-back. The document must comply with various Pakistani legislation including the Contract Act 1872, Sale of Goods Act 1930, and Islamic banking regulations, making it particularly important to structure the agreement carefully to ensure enforceability while meeting both commercial objectives and religious requirements.
