The Feedstock Supply Agreement is essential for businesses operating in Saudi Arabia that require regular supply of raw materials or feedstock for their industrial or manufacturing operations. This document type is particularly crucial in the Saudi Arabian market, where commercial relationships must align with both modern business practices and Islamic law principles. The agreement typically covers long-term supply arrangements, detailing everything from basic commercial terms to complex technical specifications. It includes provisions for quality control, delivery schedules, pricing mechanisms (structured to comply with Shariah law), and risk allocation. The document is designed to provide clarity and certainty in commercial relationships while ensuring compliance with Saudi Arabian commercial law and Shariah principles. It's commonly used in industries such as petrochemicals, manufacturing, and industrial processing, where consistent supply of raw materials is critical for operations.
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1. Parties: Identification of the supplier and purchaser with full legal names and addresses
2. Background: Context of the agreement and relationship between parties
3. Definitions: Definitions of key terms used throughout the agreement
4. Supply Obligations: Core obligations of supplier to provide feedstock and purchaser to accept delivery
5. Specifications and Quality: Detailed requirements for feedstock quality and characteristics
6. Quantity and Forecasting: Agreed volumes, minimum/maximum quantities, and forecasting procedures
7. Delivery Terms: Delivery schedule, location, method, and transfer of risk/title
8. Price and Payment: Pricing mechanism, payment terms, invoicing, and Shariah-compliant payment provisions
9. Quality Control: Testing procedures, acceptance criteria, and rejection rights
10. Term and Termination: Duration of agreement and termination rights
11. Force Majeure: Events excusing performance and consequences
12. Warranties and Representations: Standard warranties regarding capacity, quality, and compliance
13. Liability and Indemnification: Allocation of risks and liability between parties
14. Dispute Resolution: Procedures for resolving disputes under Saudi law
15. Governing Law: Confirmation of Saudi law and Shariah principles as governing law
1. Storage Requirements: Used when supplier must maintain storage facilities or specific storage conditions apply
2. Environmental Compliance: Required for hazardous or environmentally sensitive feedstock
3. Security of Supply: Include when alternative supply sources or security stock requirements are needed
4. Intellectual Property: Necessary when proprietary processes or technical information is involved
5. Competition Compliance: Required for long-term exclusive supply arrangements
6. Export/Import Compliance: Include for international supply arrangements
7. Insurance: Detailed insurance requirements beyond standard coverage
8. Change Control: Procedures for managing changes to specifications or terms
1. Schedule 1 - Product Specifications: Detailed technical specifications of the feedstock
2. Schedule 2 - Pricing Formula: Detailed pricing calculations and adjustments
3. Schedule 3 - Delivery Schedule: Detailed delivery timelines and logistics requirements
4. Schedule 4 - Quality Testing Procedures: Specific testing methods and acceptance criteria
5. Schedule 5 - Key Performance Indicators: Performance metrics and measurement methods
6. Schedule 6 - Form of Purchase Order: Standard form for ordering under the agreement
7. Schedule 7 - HSSE Requirements: Health, safety, security, and environmental requirements
8. Appendix A - Contact Details: Key contact persons and communication protocols
9. Appendix B - Required Certificates: List of required quality and compliance certificates
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