Whole Sale Contract for United Arab Emirates

Whole Sale Contract Template for United Arab Emirates

A comprehensive commercial agreement governed by UAE law that establishes the terms and conditions for wholesale trade between parties. This document addresses crucial aspects including bulk purchase arrangements, pricing structures, delivery terms, quality standards, and payment conditions in accordance with UAE Commercial Law and related regulations. It incorporates specific UAE market practices and regulatory requirements, including provisions for commercial agency relationships where applicable, and ensures compliance with local business practices and Islamic commercial principles.

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What is a Whole Sale Contract?

The Whole Sale Contract is a fundamental commercial document used in the United Arab Emirates for establishing and managing bulk trading relationships between suppliers and purchasers. This document is essential for businesses engaged in large-scale commerce within the UAE or using the UAE as a trading hub for regional operations. It addresses key aspects of wholesale trading including minimum order quantities, bulk pricing structures, warehouse arrangements, and delivery schedules. The contract ensures compliance with UAE Federal Law No. 18 of 1993 (Commercial Transactions Law) and other relevant UAE commercial regulations, while incorporating standard market practices and Islamic business principles where applicable. It is particularly relevant for businesses operating in free zones, mainland UAE companies, and international traders establishing distribution networks in the region.

What sections should be included in a Whole Sale Contract?

1. Parties: Identification of the wholesaler and buyer, including full legal names, trade licenses, and registered addresses

2. Background: Context of the wholesale arrangement and brief description of the parties' business relationship

3. Definitions: Key terms used throughout the agreement, including technical terms, industry-specific terminology, and defined concepts

4. Scope of Agreement: Details of the wholesale arrangement, including products covered and territorial limitations

5. Order and Supply Terms: Process for placing orders, minimum order quantities, and supply commitments

6. Pricing and Payment Terms: Product pricing structure, payment methods, credit terms, and late payment consequences

7. Delivery and Logistics: Delivery terms, shipping arrangements, transfer of risk, and acceptance procedures

8. Quality Standards: Product specifications, quality requirements, and inspection rights

9. Warranties and Representations: Warranties regarding product quality, compliance with laws, and authority to enter into agreement

10. Term and Termination: Duration of agreement, renewal terms, and termination rights

11. Confidentiality: Protection of confidential information and trade secrets

12. Dispute Resolution: Process for resolving disputes under UAE law, including jurisdiction and governing law

13. General Provisions: Standard contractual provisions including force majeure, notices, and amendments

What sections are optional to include in a Whole Sale Contract?

1. Exclusivity: Used when granting exclusive distribution rights in specific territories

2. Marketing and Promotion: Include when parties agree to specific marketing obligations or cooperative advertising

3. Insurance Requirements: Detailed insurance obligations when dealing with high-value or sensitive products

4. Intellectual Property Rights: Required when dealing with branded products or licensed merchandise

5. Storage and Warehousing: Include when specific storage conditions or warehousing requirements apply

6. Training and Support: Used when technical products require seller support or training

7. Anti-Corruption Compliance: Important for international trade or government-related contracts

8. Islamic Finance Compliance: Required when parties need to ensure Shariah compliance

What schedules should be included in a Whole Sale Contract?

1. Schedule 1 - Product List: Detailed list of products covered under the agreement with specifications

2. Schedule 2 - Price List: Comprehensive pricing details, including volume discounts and special rates

3. Schedule 3 - Delivery Locations: List of authorized delivery points and associated handling requirements

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

5. Schedule 5 - Returns Policy: Procedures and conditions for product returns and replacements

6. Schedule 6 - Service Level Agreement: Performance metrics and service standards

7. Appendix A - Required Certifications: Copies of necessary trade licenses and regulatory certificates

8. Appendix B - Order Form Template: Standard format for placing orders under the agreement

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

Publisher

Genie AI

Document Type

Sales Agreement

Sector

Sales

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Consumer Goods

Electronics

Textiles and Apparel

Food and Beverage

Construction Materials

Automotive Parts

Industrial Equipment

Medical Supplies

Pharmaceuticals

Home and Garden Products

Luxury Goods

Sports Equipment

Office Supplies

Agricultural Products

Relevant Teams

Legal

Procurement

Supply Chain

Commercial

Operations

Sales

Finance

Compliance

Logistics

Business Development

Distribution

Quality Control

Relevant Roles

Commercial Director

Procurement Manager

Supply Chain Manager

Legal Counsel

Contract Manager

Business Development Manager

Operations Director

Trading Manager

Sales Director

Logistics Manager

Compliance Officer

Finance Manager

Import/Export Manager

Distribution 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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