Memorandum Agreement Between Two Parties Template for Saudi Arabia

The Memorandum Agreement Between Two Parties is a fundamental document used in Saudi Arabia to formalize business relationships and collaborations between organizations. This document type is particularly relevant when parties wish to establish a formal framework for cooperation while ensuring compliance with Saudi law and Sharia principles. It is commonly used in initial stages of business relationships, joint ventures, strategic partnerships, or when parties need to document their mutual understanding before proceeding with more detailed agreements. The document must adhere to Saudi Arabian commercial regulations and typically includes provisions for dispute resolution through local courts or arbitration centers. It serves as a bridge between informal discussions and more detailed contractual arrangements, providing a clear structure for the relationship while maintaining flexibility for future development.

1. Parties: Full legal names and details of the contracting parties, including registration numbers and addresses

2. Background: Context and purpose of the memorandum, including any relevant history of the relationship

3. Definitions: Key terms used throughout the agreement, ensuring clarity and preventing misinterpretation

4. Scope of Cooperation: Detailed description of the intended collaboration or relationship between the parties

5. Duration and Term: Period of validity and any renewal provisions

6. Obligations of the Parties: Specific responsibilities and commitments of each party

7. Confidentiality: Provisions regarding the protection and handling of confidential information

8. Sharia Compliance: Statement of compliance with Islamic law principles

9. Termination: Conditions and procedures for ending the agreement

10. Governing Law: Specification of Saudi law as governing law and relevant jurisdictional provisions

11. Dispute Resolution: Mechanism for resolving disputes, typically referring to Saudi courts or arbitration

12. Notices: Communication procedures and contact details for official notices

13. Entire Agreement: Confirmation that the document represents the complete understanding between parties