This Trade Contract template is essential for businesses engaging in commercial transactions within or with Saudi Arabia. It is specifically designed to comply with Saudi Arabian legal requirements, including both the Commercial Law framework and Sharia principles. The document is particularly relevant for international trade relationships, domestic commercial arrangements, and various trading scenarios involving goods or services. The Trade Contract covers crucial elements such as payment terms (structured to be Sharia-compliant), delivery obligations, quality standards, and dispute resolution mechanisms under Saudi jurisdiction. It's adaptable for various commercial contexts while maintaining enforceability under Saudi law, making it a vital tool for businesses establishing trading relationships in the Saudi market.
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1. Parties: Identification of the contracting parties including full legal names, commercial registration numbers, and authorized representatives
2. Background: Context of the trade relationship and purpose of the agreement
3. Definitions: Key terms used throughout the agreement, including trade-specific terminology
4. Scope of Trade: Detailed description of goods/services to be traded, including specifications and standards
5. Payment Terms: Payment structure, currency, and method (structured to comply with Sharia law)
6. Delivery Terms: Delivery obligations, Incoterms (if applicable), timeframes, and logistics arrangements
7. Quality and Inspection: Quality standards, inspection procedures, and acceptance criteria
8. Warranties and Representations: Warranties regarding goods/services, authority to contract, and compliance with laws
9. Compliance: Obligations to comply with Saudi laws, regulations, and Sharia principles
10. Term and Termination: Duration of the agreement and circumstances for termination
11. Dispute Resolution: Process for resolving disputes under Saudi law, including jurisdiction of Saudi courts
12. Force Majeure: Events excusing performance, consistent with Saudi law principles
13. Notices: Communication procedures and contact details for official notices
14. Governing Law: Explicit statement of Saudi law as governing law
1. Import/Export Requirements: Required for international trade, covering customs, permits, and regulatory compliance
2. Intellectual Property: Include when trading branded goods or technology-related items
3. Confidentiality: Required when sensitive information will be exchanged
4. Insurance: Include when specific insurance requirements are needed for the goods/services
5. Bank Guarantees: Include when payment security or performance guarantees are required
6. Agency Provisions: Required when involving commercial agents under Saudi Commercial Agencies Law
7. Training and Support: Include when technical products require after-sales support
8. Storage and Warehousing: Include for goods requiring specific storage arrangements
1. Product Specifications: Detailed technical specifications of goods/services
2. Pricing Schedule: Detailed pricing structure, including any volume discounts
3. Delivery Schedule: Timing and logistics of deliveries
4. Quality Standards: Specific quality requirements and industry standards
5. Key Personnel: List of key contacts and authorized representatives
6. Required Documentation: List of required trade documentation and certificates
7. Service Level Agreement: Performance metrics and service standards
8. Compliance Certificates: Copies of required regulatory approvals and certificates
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