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Wholesale Contract

Wholesale Contract Template for Saudi Arabia

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Key Requirements PROMPT example:

Wholesale Contract

"I need a Wholesale Contract under Saudi law for supplying electronic components to distributors across the Gulf region, with exclusive territory rights and minimum quarterly purchase commitments starting March 2025."

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Document background
The Wholesale Contract serves as a fundamental legal instrument for bulk trading operations in Saudi Arabia, establishing the framework for large-scale commercial transactions between suppliers and buyers. This document is essential when businesses engage in recurring bulk purchase arrangements, requiring detailed terms for pricing, delivery, quality standards, and payment conditions. The contract must comply with Saudi Arabian commercial law, including the Commercial Court Law and Anti-Commercial Fraud Law, while adhering to Sharia principles. It is particularly crucial for businesses engaged in import/export, distribution, or large-scale domestic trade, providing legal protection and operational clarity for all parties involved. The document includes provisions for commercial registration requirements, VAT compliance, and specific Saudi market regulations.
Suggested Sections

1. Parties: Identification of the seller and buyer, including full legal names, commercial registration numbers, and authorized representatives

2. Background: Context of the wholesale arrangement and business relationship between the parties

3. Definitions: Key terms used throughout the agreement, including technical and commercial terms

4. Scope of Agreement: Details of the wholesale arrangement, including products covered and territory

5. Order and Supply Terms: Process for placing orders, minimum quantities, and delivery requirements

6. Pricing and Payment: Product pricing, payment terms, and invoicing procedures

7. Quality Standards: Product specifications, quality requirements, and compliance with Saudi standards

8. Delivery and Risk: Delivery terms, transfer of risk, and logistics arrangements

9. Warranties and Representations: Standard warranties regarding products and compliance with Saudi law

10. Term and Termination: Duration of agreement and circumstances for termination

11. Confidentiality: Protection of confidential information and trade secrets

12. Dispute Resolution: Process for resolving disputes under Saudi law

13. Governing Law: Confirmation of Saudi law and Sharia principles as governing law

14. Execution: Signature blocks and formal execution requirements

Optional Sections

1. Exclusive Territory Rights: Used when granting exclusive distribution rights in specific geographic areas

2. Marketing and Promotion: Include when parties share marketing responsibilities or requirements

3. Storage Requirements: Necessary for products requiring specific storage conditions

4. Training and Support: Include when seller provides product training or technical support

5. Insurance Requirements: Used when specific insurance coverage is required

6. Intellectual Property: Include when dealing with branded products or licensed materials

7. Force Majeure: Optional but recommended for long-term arrangements

8. Anti-Corruption: Include for compliance with international trade requirements

9. Data Protection: Include when personal data processing is involved

10. Import/Export Compliance: Required for international wholesale arrangements

Suggested Schedules

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

2. Price List: Comprehensive pricing information and volume discounts

3. Quality Standards and Specifications: Detailed product quality requirements and testing procedures

4. Delivery Schedule: Specific delivery timeframes and logistics requirements

5. Territory Map: Definition of geographic territory for distribution rights

6. Service Level Agreement: Performance metrics and service standards

7. Compliance Requirements: Detailed regulatory and quality compliance requirements

8. Return Policy: Procedures for handling returns and defective products

9. Storage and Handling Requirements: Specific requirements for product storage and handling

10. Authorized Representatives: List of authorized signatories and key contact persons

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

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Agreement
Applicable Law
Authorized Representative
Business Day
Commercial Registration
Confidential Information
Delivery Date
Delivery Location
Delivery Note
Effective Date
Force Majeure
Goods
Initial Term
Intellectual Property Rights
Invoice
Minimum Order Quantity
Order
Payment Terms
Price List
Products
Purchase Order
Quality Standards
Quarter
Renewal Term
Representatives
Saudi Standards
Seller's Premises
Sharia Compliant
Specifications
Storage Requirements
Term
Territory
Trade Terms
VAT
Warehouse
Wholesale Price
Working Hours
Zakat
Material Breach
Regulatory Approvals
Warranty Period
Lead Time
Loss
Product Schedule
Purchase Price
Quality Control
Shipping Documents
Storage Conditions
Supply Terms
Technical Standards
Clauses
Interpretation
Appointment
Supply Obligations
Ordering Process
Pricing
Payment Terms
Delivery
Title and Risk
Quality Control
Product Standards
Warranties
Returns and Refunds
Storage Requirements
Minimum Purchase Requirements
Territory Rights
Term and Duration
Termination
Consequences of Termination
Force Majeure
Confidentiality
Intellectual Property
Compliance with Laws
Anti-Corruption
Competition
Insurance
Liability and Indemnity
Assignment and Subcontracting
Notices
Dispute Resolution
Governing Law
Entire Agreement
Amendments
Severability
Waiver
Third Party Rights
Records and Audit
Product Safety
Regulatory Compliance
Islamic Finance Compliance
VAT and Taxation
Import/Export Requirements
Relevant Industries

Consumer Goods

Electronics

Automotive Parts

Food and Beverage

Textiles and Apparel

Construction Materials

Industrial Equipment

Pharmaceuticals

Agricultural Products

Home and Garden Products

Chemical Products

Medical Supplies

Office Supplies

Machinery and Tools

Packaging Materials

Relevant Teams

Legal

Procurement

Supply Chain

Commercial

Finance

Operations

Compliance

Sales

Distribution

Logistics

Risk Management

Business Development

Quality Control

Treasury

Contract Administration

Relevant Roles

Procurement Manager

Commercial Director

Supply Chain Manager

Legal Counsel

Contract Administrator

Business Development Manager

Operations Director

Chief Commercial Officer

Wholesale Manager

Distribution Manager

Compliance Officer

Finance Director

Sales Director

Import/Export Manager

Logistics Manager

Industries
Commercial Court Law: Royal Decree No. M/32 of 1931 - Governs commercial transactions and provides the basic framework for business contracts in Saudi Arabia
Commercial Agencies Law: Royal Decree No. M/11 of 1962 - Regulates commercial agency relationships and distributorship agreements
Anti-Commercial Fraud Law: Royal Decree No. M/19 of 2008 - Ensures fair trading practices and protects against fraudulent commercial activities
Competition Law: Royal Decree No. M/75 of 2019 - Prevents monopolistic practices and ensures fair competition in wholesale markets
Commercial Registration Law: Royal Decree No. M/1 of 1416H - Mandates registration requirements for businesses engaging in wholesale trade
Value Added Tax Law: Royal Decree No. M/113 of 2017 - Governs VAT obligations in commercial transactions including wholesale trade
Electronic Commerce Law: Royal Decree No. M/126 of 2019 - Regulates electronic commercial transactions and digital contracts
Commercial Papers Law: Royal Decree No. M/37 of 1963 - Governs commercial papers and payment instruments in trade transactions
Anti-Money Laundering Law: Royal Decree No. M/20 of 2017 - Ensures compliance with AML regulations in commercial transactions
Sharia Law Principles: Islamic law principles that govern commercial transactions, prohibiting riba (interest), gharar (uncertainty), and ensuring ethical business practices
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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