Document background
The General Supply Agreement serves as a fundamental commercial contract in Saudi Arabia, establishing the legal framework for ongoing supply relationships between businesses. It is typically used when parties require a structured, long-term arrangement for the regular supply of goods or materials. The document must comply with Saudi Arabian law, including both civil law principles and Sharia requirements, making it distinct from supply agreements in other jurisdictions. The agreement covers essential elements such as ordering mechanisms, delivery terms, payment structures, and quality standards, while incorporating specific provisions required under Saudi commercial law and regulatory frameworks. It is particularly important for businesses establishing supply chains within Saudi Arabia or engaging in cross-border trade with Saudi entities, as it provides clarity and legal certainty in commercial relationships while ensuring compliance with local legal requirements.
