The Sale of Goods Contract is a fundamental commercial document used in Saudi Arabia for transactions involving the transfer of goods between business entities. This document is essential when businesses engage in the purchase and sale of physical goods, whether for manufacturing, distribution, or retail purposes. The contract must comply with Saudi Arabian commercial laws, particularly the Law of Commercial Courts and Islamic Shariah principles, which prohibit certain commercial practices such as charging interest (riba). It should be used whenever there is a significant commercial transaction involving goods, especially when clear terms regarding specifications, delivery, payment, and warranties need to be documented. The agreement is particularly important for cross-regional trade within Saudi Arabia or when dealing with international parties while maintaining compliance with local regulations.
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1. Parties: Identification of seller and buyer with full legal names, addresses, and commercial registration details
2. Background: Context of the sale and brief description of the parties' business relationship
3. Definitions: Key terms used throughout the agreement, including technical specifications and trade terms
4. Subject Matter of Sale: Detailed description of the goods, including specifications, quantity, and quality standards
5. Price and Payment Terms: Purchase price, payment schedule, and method of payment (ensuring Shariah compliance)
6. Delivery Terms: Delivery location, timing, method, and risk transfer points
7. Title and Risk: Transfer of ownership and risk in the goods
8. Warranties and Representations: Quality guarantees, conformity with specifications, and legal compliance warranties
9. Inspection and Acceptance: Procedures for examining goods and accepting or rejecting delivery
10. Term and Termination: Duration of the agreement and grounds for termination
11. Governing Law and Jurisdiction: Confirmation of Saudi law application and dispute resolution mechanism
1. Import/Export Requirements: For international sales: customs, duties, and compliance with trade regulations
2. Insurance: Insurance requirements when specific coverage is needed for high-value or risky goods
3. Intellectual Property: For goods involving patents, trademarks, or other IP rights
4. Force Majeure: Provisions for unforeseen circumstances preventing performance
5. Confidentiality: For transactions involving sensitive commercial information
6. After-Sales Service: Maintenance, support, and spare parts provisions for technical equipment
7. Training and Documentation: For complex equipment requiring user training or technical documentation
1. Schedule 1 - Product Specifications: Detailed technical specifications of the goods
2. Schedule 2 - Pricing Schedule: Detailed breakdown of prices, including any volume discounts
3. Schedule 3 - Delivery Schedule: Detailed delivery timeline and milestones
4. Schedule 4 - Quality Standards: Specific quality requirements and testing procedures
5. Schedule 5 - Warranty Terms: Detailed warranty conditions and claim procedures
6. Appendix A - Required Certifications: Copies of required quality or safety certifications
7. Appendix B - Technical Drawings: Technical drawings or designs if applicable
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