Dealer Sales Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Dealer Sales Agreement

"I need a Dealer Sales Agreement for appointing an exclusive automotive dealer in Riyadh, Saudi Arabia, with minimum purchase requirements of 500 vehicles annually and a 5-year term starting January 2025."

Document background
The Dealer Sales Agreement is a crucial commercial document used in Saudi Arabia when a manufacturer or supplier wishes to appoint a dealer to sell and distribute their products within specified territories. This agreement must comply with Saudi Arabia's Commercial Agencies Law and Shariah principles, making it distinct from dealer agreements in other jurisdictions. It typically includes comprehensive provisions covering appointment terms, territorial rights, performance metrics, pricing structures, and after-sales obligations. The document is particularly important in Saudi Arabia due to specific local requirements for commercial agency relationships and the need to register certain dealer arrangements with relevant authorities. It serves as the primary framework for managing the ongoing commercial relationship between suppliers and their authorized dealers.
Suggested Sections

1. Parties: Identification of the supplier/manufacturer and the dealer, including full legal names, commercial registration numbers, and addresses

2. Background: Context of the agreement, including the supplier's business, products, and intention to appoint the dealer

3. Definitions: Key terms used throughout the agreement, including Products, Territory, Intellectual Property Rights, etc.

4. Appointment and Territory: Scope of dealer appointment, territorial limitations, and exclusivity status

5. Term and Renewal: Duration of the agreement and conditions for renewal

6. Dealer Obligations: Core responsibilities including sales targets, marketing, staff training, and customer service

7. Supplier Obligations: Responsibilities including product supply, training, technical support, and warranty provisions

8. Ordering and Delivery: Procedures for ordering products, delivery terms, and logistics arrangements

9. Prices and Payment: Pricing structure, payment terms, and currency specifications

10. Intellectual Property Rights: Usage rights for trademarks, branding, and other IP

11. Confidentiality: Protection of confidential information and trade secrets

12. Termination: Grounds for termination, notice requirements, and consequences

13. Post-Termination: Obligations and rights after agreement termination

14. Governing Law and Dispute Resolution: Specification of Saudi law governance and dispute resolution mechanisms

15. General Provisions: Standard boilerplate clauses including force majeure, notices, and amendments

Optional Sections

1. Non-Competition: Restrictions on dealer's ability to sell competing products - include if exclusivity is required

2. Performance Guarantees: Specific guarantees or bonds required - include for high-value dealerships

3. Insurance: Specific insurance requirements - include for high-risk products or operations

4. Import/Export Requirements: Special provisions for international trade - include if cross-border sales are involved

5. E-commerce Rights: Online sales provisions - include if electronic sales are permitted

6. Training and Support: Detailed training obligations - include for technical or complex products

7. Warranty Service: Detailed warranty handling procedures - include for products requiring significant after-sales service

8. Shariah Compliance: Specific provisions ensuring compliance with Islamic law - include if specifically required by parties

Suggested Schedules

1. Schedule 1 - Products: Detailed list of products covered by the agreement

2. Schedule 2 - Territory: Detailed description of geographical territory and any exclusions

3. Schedule 3 - Minimum Purchase Requirements: Annual or quarterly sales targets and minimum order quantities

4. Schedule 4 - Prices and Discount Structure: Price lists and applicable dealer discounts

5. Schedule 5 - Technical Requirements: Technical specifications for facilities, equipment, and staff qualifications

6. Schedule 6 - Marketing Guidelines: Brand guidelines and marketing requirements

7. Schedule 7 - Service Level Requirements: Customer service and after-sales service standards

8. Appendix A - Required Certifications: List of required business and technical certifications

9. Appendix B - Reporting Templates: Standard forms for regular business reporting

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

Automotive

Electronics

Industrial Equipment

Consumer Goods

Technology

Medical Devices

Machinery

Construction Equipment

Home Appliances

Telecommunications

Retail

Manufacturing

Software and IT

Fashion and Luxury Goods

Relevant Teams

Legal

Commercial

Sales

Business Development

Operations

Compliance

Supply Chain

Distribution

Contract Management

Partner Relations

Account Management

Relevant Roles

Commercial Director

Sales Manager

Legal Counsel

Business Development Manager

Distribution Manager

Operations Director

Compliance Officer

Contract Manager

Regional Sales Director

Channel Manager

Chief Commercial Officer

General Counsel

Supply Chain Manager

Account Executive

Partnership 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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