The Legal Sales Contract is a fundamental commercial document used in Saudi Arabia to formalize the sale of goods between parties. It serves as a legally binding agreement that must comply with both Saudi commercial law and Sharia principles, making it distinct from sales contracts in other jurisdictions. This document is essential for businesses conducting sales transactions within Saudi Arabia or with Saudi entities, whether for one-time sales or ongoing supply arrangements. The contract addresses crucial elements including product specifications, pricing, delivery terms, warranties, and dispute resolution mechanisms, while ensuring adherence to local regulatory requirements. It provides legal protection for both parties and clarity on their respective rights and obligations, incorporating necessary provisions for commercial transactions under Saudi law.
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1. Parties: Identification of seller and buyer with full legal names, commercial registration numbers, and authorized representatives
2. Background: Context of the sale and brief description of the transaction
3. Definitions: Key terms used throughout the agreement defined for clarity
4. Subject Matter of Sale: Detailed description of goods being sold including quantity, specifications, and quality standards
5. Purchase Price: Price, currency, payment terms, and payment method in compliance with Sharia principles
6. Delivery Terms: Delivery schedule, location, method, and transfer of risk
7. Warranties and Representations: Warranties regarding goods quality, ownership, and compliance with laws
8. Seller's Obligations: Detailed responsibilities of the seller including quality assurance and documentation
9. Buyer's Obligations: Detailed responsibilities of the buyer including inspection and acceptance procedures
10. Title and Risk: Transfer of ownership and risk provisions
11. Term and Termination: Duration of agreement and circumstances for termination
12. Dispute Resolution: Process for resolving disputes under Saudi law, including jurisdiction of Saudi courts
13. Governing Law: Explicit statement of Saudi law and Sharia principles as governing law
14. Notices: Communication methods and contact details for official notices
15. General Provisions: Standard boilerplate clauses including entire agreement, amendments, and severability
1. Intellectual Property Rights: Include when sale involves branded goods or technology transfer
2. Confidentiality: Include when sensitive information will be exchanged during the transaction
3. Insurance: Include when specific insurance requirements are needed for high-value goods
4. Force Majeure: Include when need to address potential extraordinary circumstances affecting performance
5. Export/Import Compliance: Include for international sales requiring compliance with trade regulations
6. Training and Support: Include when seller must provide training or technical support for goods
7. Warranty Period and Claims: Include for goods requiring extended warranty terms
8. Return Policy: Include when specific return conditions need to be outlined
9. Quality Control: Include for goods requiring specific quality standards or testing procedures
1. Schedule 1 - Product Specifications: Detailed technical specifications of the goods
2. Schedule 2 - Pricing Schedule: Detailed breakdown of prices, including any volume discounts or special terms
3. Schedule 3 - Delivery Schedule: Detailed timeline and logistics for delivery of goods
4. Schedule 4 - Quality Standards: Specific quality requirements and testing procedures
5. Schedule 5 - Warranty Terms: Detailed warranty conditions and claim procedures
6. Appendix A - Required Documentation: List of required certificates, permits, and documentation
7. Appendix B - After-Sales Support: Details of maintenance, support, and spare parts provisions
8. Appendix C - Compliance Certificates: Copies of relevant compliance certificates and permits
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Retail
Wholesale Trade
Technology
Construction
Automotive
Healthcare
Consumer Goods
Industrial Equipment
Energy
Agriculture
Electronics
Telecommunications
Textiles
Food and Beverage
Relevant Teams
Legal
Commercial
Sales
Procurement
Compliance
Operations
Finance
Risk Management
Business Development
Supply Chain
Contract Administration
Relevant Roles
Legal Counsel
Commercial Director
Sales Manager
Procurement Manager
Contract Administrator
Business Development Manager
Compliance Officer
General Manager
Chief Commercial Officer
Operations Director
Supply Chain Manager
Finance Manager
Risk Manager
Corporate Lawyer
Business Unit Head
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