Master Supplier Agreement Template for Saudi Arabia

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Master Supplier Agreement

"I need a Master Supplier Agreement under Saudi law for a technology hardware supply relationship, where we'll be the customer receiving regular shipments of IT equipment and requiring strict quality control measures, with the agreement planned to start in March 2025."

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What is a Master Supplier Agreement?

The Master Supplier Agreement is designed for use in the Saudi Arabian market where companies require a robust legal framework for managing their supply chain relationships. This document is particularly suitable for businesses establishing long-term or recurring supply arrangements, providing a comprehensive framework under which multiple transactions can be executed through purchase orders. The agreement incorporates essential elements of Saudi law, including Shariah compliance requirements, local commercial regulations, and standard business practices. It addresses key aspects such as ordering mechanisms, quality standards, payment terms, compliance obligations, and dispute resolution procedures, while remaining flexible enough to accommodate various types of goods or services. The Master Supplier Agreement is structured to protect both parties' interests while facilitating efficient commercial operations in accordance with Saudi Arabian legal and regulatory requirements.

What sections should be included in a Master Supplier Agreement?

1. Parties: Identification of the parties, including full legal names, commercial registration numbers, and authorized representatives

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

3. Definitions and Interpretation: Key terms used throughout the agreement and rules of interpretation

4. Scope of Agreement: Framework terms for the supply relationship and exclusivity provisions if applicable

5. Ordering Process: Procedures for placing and accepting purchase orders under the agreement

6. Delivery and Acceptance: Terms regarding delivery, inspection, and acceptance of goods/services

7. Pricing and Payment: Price determination, invoicing procedures, and payment terms

8. Quality Requirements: Quality standards, warranties, and compliance with specifications

9. Term and Termination: Duration of agreement, renewal provisions, and termination rights

10. Supplier Obligations: Key responsibilities and commitments of the supplier

11. Customer Obligations: Key responsibilities and commitments of the customer

12. Compliance with Laws: Obligation to comply with Saudi laws, including Shariah principles

13. Confidentiality: Protection of confidential information and trade secrets

14. Liability and Indemnification: Risk allocation between parties and indemnification obligations

15. Force Majeure: Events excusing performance and related procedures

16. Dispute Resolution: Procedures for resolving disputes under Saudi law

17. General Provisions: Standard boilerplate clauses including notices, amendments, and governing law

What sections are optional to include in a Master Supplier Agreement?

1. Insurance Requirements: Detailed insurance obligations - include when high-value goods or services are involved

2. Intellectual Property Rights: IP ownership and licenses - include when supplies involve technology or branded products

3. Data Protection: Data handling obligations - include when personal or sensitive data is processed

4. Import/Export Compliance: Trade compliance obligations - include for international supply arrangements

5. Business Continuity: Disaster recovery requirements - include for critical supply relationships

6. Environmental Compliance: Environmental standards - include for environmentally sensitive supplies

7. Saudization Requirements: Local content requirements - include when relevant to the industry sector

8. Anti-Corruption Compliance: Detailed anti-corruption provisions - include for high-value or government-related contracts

9. Change Control: Formal process for changes - include for complex or technical supplies

What schedules should be included in a Master Supplier Agreement?

1. Schedule 1 - Goods and Services: Detailed description of goods/services to be supplied

2. Schedule 2 - Pricing Schedule: Detailed pricing, including any volume discounts or price adjustment mechanisms

3. Schedule 3 - Service Levels: Performance metrics and service level requirements

4. Schedule 4 - Technical Specifications: Detailed technical requirements and standards

5. Schedule 5 - Key Personnel: List of key supplier personnel and their roles

6. Schedule 6 - Approved Subcontractors: List of pre-approved subcontractors if applicable

7. Schedule 7 - Form of Purchase Order: Standard form for placing orders under the agreement

8. Schedule 8 - Compliance Requirements: Detailed compliance obligations and procedures

9. Schedule 9 - Business Continuity Plan: Detailed business continuity and disaster recovery procedures

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

Construction

Oil & Gas

Healthcare

Technology

Telecommunications

Food & Beverage

Automotive

Pharmaceuticals

Industrial Equipment

Consumer Goods

Energy

Logistics

Professional Services

Relevant Teams

Procurement

Legal

Finance

Operations

Supply Chain

Compliance

Risk Management

Commercial

Vendor Management

Strategic Sourcing

Contract Administration

Relevant Roles

Procurement Manager

Supply Chain Director

Legal Counsel

Commercial Director

Operations Manager

Contract Manager

Chief Financial Officer

Compliance Officer

Risk Manager

Category Manager

Vendor Manager

Strategic Sourcing Manager

Supply Chain Analyst

General Counsel

Chief Operating Officer

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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