Commercial Supply Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Commercial Supply Agreement

"I need a Commercial Supply Agreement for my Saudi-based manufacturing company to supply automotive parts to a major car manufacturer in Jeddah, with specific quality control requirements and just-in-time delivery provisions starting March 2025."

Document background
The Commercial Supply Agreement is a fundamental business document used to establish and govern ongoing supply relationships between commercial entities operating under Saudi Arabian law. This agreement is essential when businesses require a structured framework for regular supply of goods or materials, whether in domestic or international trade contexts. The document addresses critical aspects such as order processes, delivery terms, quality standards, warranties, and payment terms, while ensuring compliance with Saudi commercial regulations and Sharia law principles. It's particularly important for businesses engaging in regular supply transactions that require clear terms, risk allocation, and dispute resolution mechanisms. The agreement must be carefully drafted to reflect local legal requirements while maintaining commercial practicality.
Suggested Sections

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

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

3. Definitions: Definitions of key terms used throughout the agreement

4. Supply Obligations: Core obligations of the supplier regarding the provision of goods

5. Ordering Process: Procedures for placing and accepting orders

6. Delivery Terms: Delivery timelines, locations, and responsibilities

7. Price and Payment: Pricing structure, payment terms, and invoicing procedures including VAT considerations

8. Quality and Standards: Quality requirements and applicable standards for supplied goods

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

10. Warranties: Warranties relating to the goods and services provided

11. Term and Termination: Duration of agreement and termination provisions

12. Confidentiality: Protection of confidential information

13. Force Majeure: Provisions for unforeseen circumstances preventing performance

14. Dispute Resolution: Procedures for resolving disputes under Saudi law

15. Governing Law: Confirmation of Saudi law as governing law and jurisdiction

Optional Sections

1. Import/Export Compliance: Required if goods are being imported/exported, covering customs requirements and trade regulations

2. Insurance: Detailed insurance requirements when specific coverage is needed beyond standard arrangements

3. Intellectual Property: Required when the supply involves branded products or licensed materials

4. Change Control: Include for complex supply arrangements where specifications may need to change over time

5. Service Levels: Required when specific performance metrics need to be maintained

6. Security Requirements: Include when handling sensitive materials or accessing secure facilities

7. Environmental Compliance: Required for goods with environmental impact or regulatory requirements

8. Anti-Corruption: Detailed provisions when dealing with government entities or high-risk sectors

9. Data Protection: Required when personal data processing is involved in the supply arrangement

Suggested Schedules

1. Product Specifications: Detailed technical specifications of the goods to be supplied

2. Pricing Schedule: Detailed pricing structure, including any volume discounts or special pricing arrangements

3. Service Level Agreement: Detailed performance metrics and measurement criteria

4. Delivery Locations: List of approved delivery locations and specific requirements for each

5. Quality Control Procedures: Detailed quality control and testing procedures

6. Key Personnel: List of key contacts and responsible personnel from both parties

7. Form of Purchase Order: Standard template for purchase orders

8. Compliance Requirements: Detailed regulatory and compliance requirements specific to the goods

9. Return Procedures: Procedures for handling returns and defective goods

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

Clauses
Relevant Industries

Manufacturing

Retail

Wholesale Trade

Construction

Oil & Gas

Healthcare

Technology

Automotive

Food & Beverage

Industrial Equipment

Consumer Goods

Electronics

Chemicals

Pharmaceuticals

Telecommunications

Relevant Teams

Legal

Procurement

Supply Chain

Operations

Finance

Compliance

Commercial

Sales

Risk Management

Quality Assurance

Logistics

Business Development

Relevant Roles

Procurement Manager

Supply Chain Director

Commercial Director

Legal Counsel

Contract Manager

Operations Manager

Chief Financial Officer

Purchasing Officer

Compliance Officer

Business Development Manager

Sales Director

General Manager

Risk Manager

Quality Assurance Manager

Logistics 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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