Marketing Commission Agreement Template for Saudi Arabia

The Marketing Commission Agreement is essential for businesses operating in Saudi Arabia who wish to engage marketing agents to promote their products or services. This document is specifically structured to comply with Saudi Arabian commercial law, including the Commercial Agencies Law and relevant Sharia principles. It's particularly important when establishing formal marketing relationships where commission-based compensation is involved. The agreement covers crucial aspects such as territory rights, commission calculations, payment terms, marketing obligations, and compliance requirements. It's designed to protect both parties' interests while ensuring adherence to local regulations, including requirements for commercial agency registration with the Ministry of Commerce where applicable.

1. Parties: Identification of the Principal and Marketing Agent, including full legal names, addresses, and commercial registration details as required by Saudi law

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

3. Definitions: Key terms used throughout the agreement, including specific marketing terminology and commission-related definitions

4. Appointment and Scope: Terms of the Marketing Agent's appointment, territory, and scope of authorized marketing activities

5. Marketing Agent's Obligations: Detailed responsibilities including marketing activities, reporting requirements, and compliance with Saudi regulations

6. Principal's Obligations: Support, materials, and information to be provided by the Principal

7. Commission Structure: Detailed explanation of commission calculations, payment terms, and conditions for commission eligibility

8. Payment Terms: Payment mechanics, currency, and timing of commission payments in compliance with Sharia principles

9. Compliance: Requirements for adherence to Saudi laws, including advertising regulations and Sharia principles

10. Term and Termination: Duration of the agreement and circumstances for termination

11. Confidentiality: Protection of confidential information and trade secrets

12. Non-Competition and Non-Solicitation: Restrictions on competitive activities and client solicitation

13. Governing Law and Jurisdiction: Specification of Saudi law as governing law and jurisdiction for dispute resolution

14. General Provisions: Standard clauses including force majeure, notices, and amendment procedures