Commercial Sale Contract Template for Saudi Arabia

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Key Requirements PROMPT example:

Commercial Sale Contract

"I need a Commercial Sale Contract for the supply of industrial machinery from our Saudi manufacturing company to a UAE buyer, with quarterly deliveries throughout 2025 and payment in installments. The contract should include installation services and technical support provisions."

Document background
This Commercial Sale Contract template is specifically designed for business-to-business transactions within the Saudi Arabian legal framework. It serves as a fundamental document for commercial transactions involving the sale of goods between companies operating in or trading with Saudi Arabia. The contract must comply with both Saudi commercial regulations and Sharia law principles, which form the foundation of the Saudi legal system. It is particularly useful for transactions involving domestic sales within Saudi Arabia or international sales where Saudi law is the governing law. The document includes essential provisions for price, payment terms, delivery, warranties, and dispute resolution, while incorporating specific requirements of Saudi commercial law such as compliance with the Commercial Court Law of 2020 and relevant regulatory requirements. This template is suitable for various commercial transactions, from simple one-time purchases to complex ongoing supply arrangements, and can be customized based on the specific nature of the goods and the commercial relationship between the parties.
Suggested Sections

1. Parties: Identification of seller and buyer with full legal names, addresses, and commercial registration details

2. Background: Context of the sale and brief description of the commercial relationship

3. Definitions: Key terms used throughout the contract, including technical terms and abbreviated references

4. Subject Matter of Sale: Detailed description of goods being sold, including quantity and specifications

5. Price and Payment Terms: Purchase price, payment schedule, method of payment, and currency

6. Delivery Terms: Delivery schedule, location, method, and transfer of risk

7. Title and Risk: Point of transfer of ownership and risk in the goods

8. Warranties and Representations: Seller's warranties regarding goods' quality, conformity, and fitness for purpose

9. Inspection and Acceptance: Buyer's rights to inspect goods and procedures for acceptance or rejection

10. Compliance with Laws: Commitment to comply with Saudi laws and Sharia principles

11. Termination: Grounds and procedures for contract termination

12. Force Majeure: Events excusing performance and procedures for handling such situations

13. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and applicable law

14. Notices: Methods and addresses for formal communications between parties

15. General Provisions: Standard boilerplate clauses including amendments, waiver, and severability

Optional Sections

1. International Shipping Terms: Required for international sales, including Incoterms and customs requirements

2. Installment Payment Structure: Needed when payment is to be made in installments, including detailed payment schedule

3. Quality Control Procedures: For goods requiring specific quality standards or certification

4. Training and Support: When the sale includes technical equipment requiring user training

5. Intellectual Property Rights: Required when the goods involve patents, trademarks, or other IP rights

6. Confidentiality: For transactions involving sensitive commercial information

7. Insurance Requirements: Specific insurance obligations for high-value or high-risk goods

8. After-Sales Service: Terms for maintenance, repair, and support services post-sale

9. Return and Refund Policy: Detailed procedures for returns and refunds if applicable

Suggested Schedules

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

2. Schedule 2 - Pricing Schedule: Detailed breakdown of prices, including any volume discounts

3. Schedule 3 - Delivery Schedule: Detailed timeline and locations for delivery of goods

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

5. Schedule 5 - Warranty Terms: Detailed warranty terms and claim procedures

6. Appendix A - Required Certifications: Copies of required certifications or permits

7. Appendix B - Form of Acceptance Certificate: Template for formal acceptance of goods

8. Appendix C - Technical Documentation: Operating manuals and technical documentation

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

Relevant legal definitions
Clauses
Relevant Industries

Manufacturing

Retail

Wholesale Trade

Industrial Equipment

Consumer Goods

Technology

Automotive

Construction Materials

Electronics

Food and Beverage

Textiles

Chemical Products

Pharmaceuticals

Agricultural Products

Mining and Minerals

Relevant Teams

Legal

Procurement

Sales

Commercial Operations

Supply Chain

Finance

Compliance

Operations

Business Development

Risk Management

International Trade

Contract Administration

Relevant Roles

Legal Counsel

Commercial Director

Procurement Manager

Sales Manager

Contract Manager

Business Development Manager

Supply Chain Manager

Operations Manager

Finance Manager

Compliance Officer

General Manager

Commercial Operations Director

Chief Legal Officer

Chief Commercial Officer

Import/Export 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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