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Supply Of Goods Agreement for Saudi Arabia

Supply Of Goods Agreement Template for Saudi Arabia

A comprehensive commercial agreement governed by Saudi Arabian law that establishes the terms and conditions for the supply of goods between parties. The document incorporates Shariah-compliant provisions and adheres to Saudi commercial regulations, including the Commercial Court Law and relevant regulatory requirements. It covers essential elements such as delivery terms, quality standards, payment mechanisms, and dispute resolution procedures, while ensuring compliance with local content requirements and Saudi customs regulations. The agreement is structured to protect both parties' interests while maintaining alignment with Islamic business principles and Saudi Arabian commercial practices.

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What is a Supply Of Goods Agreement?

The Supply of Goods Agreement is a fundamental commercial contract used in Saudi Arabia to establish and regulate the relationship between suppliers and buyers of goods. This document is essential for businesses operating in the Kingdom, whether they are local entities or international companies engaging in cross-border trade. The agreement must comply with Islamic Shariah principles and Saudi Arabian commercial laws, including the Commercial Court Law and various regulatory requirements. It typically includes detailed provisions on ordering processes, quality standards, delivery terms, payment mechanisms, and dispute resolution procedures. The document is particularly important given Saudi Arabia's position as a major market for imported goods and its growing manufacturing sector under Vision 2030. It serves to protect both parties' interests while ensuring compliance with local regulations, customs requirements, and industry standards.

What sections should be included in a Supply Of Goods Agreement?

1. Parties: Identification of the supplier and buyer, including full legal names, commercial registration numbers, and authorized representatives

2. Background: Context of the agreement and brief description of the business relationship

3. Definitions: Key terms used throughout the agreement, including technical terms, delivery terms, and other important concepts

4. Scope of Supply: Detailed description of the goods to be supplied and any associated services

5. Ordering Process: Procedures for placing and accepting purchase orders, including minimum order quantities if applicable

6. Price and Payment: Pricing structure, payment terms, invoicing requirements, and currency specifications

7. Delivery and Risk: Delivery terms, timelines, Incoterms, transfer of risk, and logistics responsibilities

8. Quality and Inspection: Quality standards, inspection rights, acceptance criteria, and warranty provisions

9. Title and Risk: Transfer of ownership and risk in the goods

10. Warranties and Representations: Standard warranties regarding goods quality, compliance with laws, and authority to contract

11. Compliance with Laws: Obligations to comply with Saudi laws, including Shariah principles and regulatory requirements

12. Term and Termination: Duration of the agreement and grounds for termination

13. Liability and Indemnification: Limitations of liability, indemnification obligations, and insurance requirements

14. Force Majeure: Events excusing performance and procedures for handling force majeure situations

15. Confidentiality: Protection of confidential information exchanged during the business relationship

16. Governing Law and Dispute Resolution: Application of Saudi law and dispute resolution mechanisms

17. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment

What sections are optional to include in a Supply Of Goods Agreement?

1. Exclusivity: Terms regarding exclusive supply arrangements, used when supplier is granted exclusive rights

2. Minimum Purchase Commitments: Required when there are minimum purchase obligations

3. Storage and Warehousing: Required when supplier maintains local stock or operates warehousing facilities

4. Training and Support: Included when supplier provides technical training or operational support

5. Import/Export Obligations: Required for international supply arrangements

6. Product Development: Included when parties collaborate on product modifications or developments

7. Marketing and Branding: Required when agreement includes marketing obligations or brand usage rights

8. Return and Replacement: Detailed procedures for handling defective or unwanted goods

9. Environmental Compliance: Required for goods with environmental impact or specific disposal requirements

10. Data Protection: Required when personal data processing is involved in the supply relationship

What schedules should be included in a Supply Of Goods Agreement?

1. Schedule 1 - Product Specifications: Detailed technical specifications of the goods

2. Schedule 2 - Pricing Schedule: Detailed pricing information, including any volume discounts or price adjustment mechanisms

3. Schedule 3 - Service Levels: Performance metrics and service level requirements

4. Schedule 4 - Quality Standards: Detailed quality requirements and testing procedures

5. Schedule 5 - Delivery Locations: List of approved delivery locations and specific delivery requirements

6. Schedule 6 - Forms: Standard forms for purchase orders, acceptance certificates, and other routine documents

7. Schedule 7 - Key Contacts: Contact information for key personnel from both parties

8. Appendix A - Compliance Requirements: Specific regulatory and compliance requirements applicable to the goods

9. Appendix B - Technical Documentation: Required technical documentation, certificates, and compliance records

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Saudi Arabia

Publisher

Genie AI

Document Type

Service Agreement

Cost

Free to use
Relevant legal definitions




































Clauses









































Relevant Industries

Manufacturing

Retail

Construction

Healthcare

Technology

Automotive

Energy

Food and Beverage

Pharmaceuticals

Industrial Equipment

Consumer Goods

Electronics

Chemicals

Telecommunications

Agriculture

Relevant Teams

Legal

Procurement

Supply Chain

Operations

Finance

Compliance

Quality Assurance

Logistics

Commercial

Risk Management

International Trade

Vendor Management

Relevant Roles

Procurement Manager

Supply Chain Director

Commercial Director

Legal Counsel

Contracts Manager

Operations Manager

Logistics Manager

Quality Assurance Manager

Finance Director

Compliance Officer

Import/Export Manager

Business Development Manager

Chief Operating Officer

Purchasing Officer

Vendor Relations Manager

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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