Limited Agency Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Limited Agency Agreement

"I need a Limited Agency Agreement for appointing a Saudi agent to distribute our medical equipment in Riyadh and Jeddah only, starting March 2025, with strict limitations on pricing authority and a requirement for monthly sales reporting."

Document background
The Limited Agency Agreement is essential for businesses seeking to establish controlled commercial relationships in Saudi Arabia. This document is particularly crucial when a principal wishes to appoint an agent with specific limitations on their authority to act on the principal's behalf. It must comply with Saudi Commercial Agency Law, related regulations, and Sharia principles, requiring careful consideration of local legal requirements and business practices. The agreement typically includes detailed provisions on the scope of authority, territorial restrictions, commission structures, and compliance obligations. It's commonly used by foreign companies entering the Saudi market through local agents, or by Saudi companies expanding their distribution networks while maintaining control over their business relationships. The Limited Agency Agreement must be registered with relevant Saudi authorities and should clearly distinguish itself from unlimited agency or distribution agreements.
Suggested Sections

1. Parties: Identification of Principal and Agent with full legal names and addresses

2. Background: Context of the agreement and relationship between the parties

3. Definitions: Key terms used throughout the agreement

4. Appointment and Scope: Express appointment of agent and clear definition of limited agency scope

5. Territory: Geographical area where agent is authorized to act

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

7. Agent's Rights and Obligations: Detailed responsibilities and authorities of the agent

8. Principal's Rights and Obligations: Detailed responsibilities and commitments of the principal

9. Commission and Payment Terms: Compensation structure and payment details

10. Confidentiality: Protection of confidential information and trade secrets

11. Non-Competition and Non-Solicitation: Restrictions on competitive activities

12. Compliance with Laws: Obligation to comply with Saudi laws and regulations

13. Dispute Resolution: Procedure for resolving disputes under Saudi law

14. Governing Law: Confirmation of Saudi law as governing law

15. General Provisions: Standard boilerplate clauses including notices, amendments, etc.

Optional Sections

1. Intellectual Property Rights: Required when the agency involves use of trademarks or other IP

2. Training and Support: Include when principal provides training or technical support

3. Performance Targets: Include when specific sales or performance targets are required

4. Marketing and Promotion: Include when agent has specific marketing responsibilities

5. Insurance Requirements: Include when specific insurance coverage is required

6. Bank Guarantee: Include when financial security is required from the agent

7. Sub-Agents: Include if agent is permitted to appoint sub-agents

8. Import/Export Requirements: Include for cross-border trade activities

Suggested Schedules

1. Schedule 1 - Products/Services: Detailed list of products or services covered by the agency

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

3. Schedule 3 - Commission Structure: Detailed breakdown of commission calculations and payment terms

4. Schedule 4 - Performance Criteria: Specific targets and performance measurement metrics

5. Schedule 5 - Required Registrations: List of required governmental registrations and permits

6. Schedule 6 - Approved Sub-agents: List of pre-approved sub-agents if applicable

7. Schedule 7 - Principal's Trademarks: Details of trademarks agent is authorized to use

8. Appendix A - Standard Operating Procedures: Detailed operational procedures and requirements

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

Distribution

Technology

Healthcare

Automotive

Consumer Goods

Industrial Equipment

Electronics

Pharmaceutical

Construction

Energy

Telecommunications

Professional Services

Food and Beverage

Relevant Teams

Legal

Commercial

Business Development

Sales

Compliance

Operations

International Business

Corporate Affairs

Regulatory Affairs

Contract Management

Executive Leadership

Relevant Roles

Legal Counsel

Commercial Director

Business Development Manager

Sales Director

Compliance Officer

Contract Manager

Regional Manager

Chief Executive Officer

Chief Commercial Officer

Operations Director

International Business Manager

Regional Sales Manager

General Counsel

Corporate Secretary

Regulatory Affairs 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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