The Monthly Retainer Contract is essential for businesses operating in Saudi Arabia that provide or receive regular, ongoing professional services. This document type is particularly relevant in situations where services are provided on a continuous basis with a fixed monthly fee structure. It ensures compliance with Saudi Arabian commercial law, including the Commercial Courts Law and relevant regulations under Sharia principles. The contract typically includes comprehensive details about service scope, performance standards, payment terms, and compliance requirements. It's designed to protect both service providers and clients in long-term professional relationships, incorporating necessary provisions for VAT compliance, dispute resolution mechanisms, and termination rights. The document is especially important for businesses seeking to establish stable, long-term service relationships in the Saudi market while ensuring legal compliance and risk management.
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1. Parties: Identification of the service provider and client, including full legal names, addresses, and commercial registration details
2. Background: Context of the agreement and general purpose of the retainer arrangement
3. Definitions: Key terms used throughout the agreement, including 'Services', 'Retainer Fee', 'Service Period', etc.
4. Scope of Services: Detailed description of the services covered under the retainer arrangement
5. Term and Renewal: Duration of the agreement and conditions for renewal or extension
6. Retainer Fee and Payment Terms: Monthly fee amount, payment schedule, VAT implications, and payment methods
7. Service Provider's Obligations: Key responsibilities and commitments of the service provider
8. Client's Obligations: Key responsibilities and commitments of the client
9. Confidentiality: Provisions for handling confidential information and trade secrets
10. Intellectual Property: Ownership and usage rights of any IP created during service provision
11. Termination: Grounds and procedures for contract termination
12. Governing Law and Jurisdiction: Specification of Saudi law as governing law and relevant jurisdiction
13. Force Majeure: Provisions for unforeseen circumstances preventing contract performance
14. Notices: Methods and addresses for official communications between parties
1. Non-Competition: Restrictions on competitive activities, if relevant to the service relationship
2. Service Level Agreement: Specific performance metrics and standards, if applicable to the services
3. Insurance: Insurance requirements if the services involve specific risks
4. Data Protection: Specific provisions for handling personal data if relevant to the services
5. Shariah Compliance: Specific provisions ensuring compliance with Islamic principles if required by the nature of services
6. Assignment: Rights and restrictions regarding contract assignment to third parties
7. Subcontracting: Provisions regarding the use of subcontractors if relevant to the services
1. Schedule 1 - Scope of Services: Detailed breakdown of services covered under the retainer
2. Schedule 2 - Fee Structure: Detailed breakdown of the retainer fee and any additional charges
3. Schedule 3 - Service Levels: Specific performance metrics and response times if applicable
4. Schedule 4 - Key Personnel: List of key team members assigned to provide the services
5. Schedule 5 - Reports and Deliverables: Format and frequency of reports or deliverables to be provided
6. Appendix A - Communication Protocol: Procedures for routine communications and escalations
7. Appendix B - Compliance Requirements: Specific regulatory or industry compliance requirements
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