Reseller Agreement for Saudi Arabia

Reseller Agreement Template for Saudi Arabia

A comprehensive legal agreement governed by Saudi Arabian law that establishes and regulates the business relationship between a supplier/manufacturer and a reseller. The document outlines the terms and conditions under which the reseller is authorized to market, distribute, and sell the supplier's products within a defined territory in Saudi Arabia. The agreement incorporates provisions compliant with Saudi Commercial Law and Shariah principles, including specific requirements under the Commercial Agencies Law, while addressing key aspects such as territorial rights, pricing structures, performance obligations, and compliance requirements.

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What is a Reseller Agreement?

The Reseller Agreement serves as a critical legal framework for businesses looking to expand their distribution network in Saudi Arabia through local partners. This document is essential when a manufacturer or supplier wishes to appoint a reseller to market and sell their products in the Saudi market. It must comply with Saudi Arabia's Commercial Agencies Law and other relevant regulations, including Shariah law principles. The agreement typically covers crucial elements such as territory definition, pricing mechanisms, performance targets, warranty obligations, and intellectual property rights. It's particularly important in sectors requiring local presence for market access and is structured to protect both parties while ensuring compliance with local business practices and regulatory requirements.

What sections should be included in a Reseller Agreement?

1. Parties: Identification of the supplier/manufacturer and the reseller, including full legal names, registration details, and addresses

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

3. Definitions: Detailed definitions of key terms used throughout the agreement

4. Appointment and Territory: Scope of reseller's appointment, territory definition, and any exclusivity provisions

5. Rights and Obligations of the Supplier: Supplier's commitments regarding product supply, support, training, and warranty

6. Rights and Obligations of the Reseller: Reseller's commitments regarding sales, marketing, customer service, and reporting

7. Ordering and Delivery: Process for placing orders, delivery terms, and logistics arrangements

8. Prices and Payment Terms: Pricing structure, payment conditions, currency, and invoicing procedures

9. Intellectual Property Rights: Protection and usage rights of trademarks, logos, and other IP

10. Compliance with Laws: Obligations to comply with Saudi regulations, including Commercial Agencies Law and Shariah principles

11. Term and Termination: Duration of agreement, renewal terms, and termination conditions

12. Confidentiality: Protection of confidential information and trade secrets

13. Governing Law and Dispute Resolution: Application of Saudi law and dispute resolution mechanisms

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

What sections are optional to include in a Reseller Agreement?

1. Marketing and Promotion: Specific marketing requirements and commitments - include when marketing obligations are substantial

2. Performance Targets: Minimum purchase or sales targets - include when specific performance metrics are required

3. Training Requirements: Detailed training obligations - include when products require technical expertise

4. After-Sales Service: Service and support requirements - include for technical or complex products

5. Insurance: Insurance requirements - include when dealing with high-value products or specific risks

6. Data Protection: Data handling and privacy obligations - include when personal data processing is involved

7. Non-Competition: Restrictions on competing activities - include when exclusivity is important

8. Bank Guarantee: Financial security requirements - include for high-value contracts or credit arrangements

What schedules should be included in a Reseller Agreement?

1. Product List: Detailed list of products covered by the agreement with specifications

2. Price List: Comprehensive pricing structure, discounts, and margin arrangements

3. Territory Definition: Detailed description of geographical territory with any exclusions

4. Service Level Agreement: Specific performance metrics and service standards

5. Trademark Usage Guidelines: Rules and specifications for using supplier's trademarks and branding

6. Reporting Templates: Standard formats for required business reports and updates

7. Technical Requirements: Technical specifications and standards for product handling

8. Compliance Requirements: Detailed compliance checklist and procedures under Saudi law

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

Jurisdiction

Saudi Arabia

Publisher

Genie AI

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Technology and Electronics

Consumer Goods

Automotive

Healthcare and Medical Devices

Industrial Equipment

Software and IT Services

Telecommunications

Fashion and Luxury Goods

Construction Materials

Food and Beverage

Pharmaceuticals

Home Appliances

Relevant Teams

Legal

Commercial

Sales

Business Development

Operations

Compliance

Supply Chain

Partner Management

Contract Administration

Distribution

International Trade

Relevant Roles

Chief Executive Officer

Commercial Director

Sales Director

Business Development Manager

Channel Manager

Legal Counsel

Compliance Officer

Contract Manager

Regional Sales Manager

Distribution Manager

Operations Director

Chief Commercial Officer

Partner Management Executive

Supply Chain Manager

General Counsel

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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