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Agreement For Supply Of Goods On Credit for Saudi Arabia

Agreement For Supply Of Goods On Credit Template for Saudi Arabia

A comprehensive legal agreement governed by Saudi Arabian law that establishes the terms and conditions for the supply of goods on a credit basis. The document incorporates Sharia-compliant financing structures and adheres to Saudi commercial regulations, including the Commercial Court Law and Islamic Banking Control Law. It details the supply arrangements, credit terms, payment schedules, delivery requirements, and quality standards while ensuring compliance with local legal requirements and business practices. The agreement includes provisions for risk management, dispute resolution under Saudi jurisdiction, and necessary safeguards for both supplier and buyer.

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What is a Agreement For Supply Of Goods On Credit?

The Agreement For Supply Of Goods On Credit is essential for businesses operating in Saudi Arabia that wish to establish ongoing supply relationships with deferred payment terms. This document is particularly relevant in the current Saudi market where businesses seek flexible payment arrangements while ensuring compliance with Islamic finance principles. The agreement addresses key aspects including credit limits, payment schedules, delivery terms, and quality standards, while incorporating necessary provisions to comply with Saudi commercial law and Sharia requirements. It is commonly used when suppliers wish to offer credit terms to established customers, providing a structured framework for managing credit risk while maintaining smooth supply operations. The document includes specific provisions required under Saudi jurisdiction, including appropriate dispute resolution mechanisms and enforcement procedures under local law.

What sections should be included in a Agreement For Supply Of Goods On Credit?

1. Parties: Identification of supplier and buyer with full legal names, commercial registration details, and authorized representatives

2. Background: Context of the agreement and general commercial relationship between parties

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

4. Supply of Goods: Details of goods to be supplied, specifications, quality standards, and compliance with Saudi standards

5. Ordering Process: Procedures for placing orders, confirmation, and modification of orders

6. Delivery Terms: Delivery schedules, locations, packaging requirements, and acceptance procedures

7. Credit Terms: Credit limit, payment terms, invoicing process, and Sharia-compliant financing structure

8. Price and Payment: Pricing mechanism, currency, payment schedule, and late payment consequences

9. Title and Risk: Transfer of ownership and risk in goods, retention of title provisions

10. Warranties and Quality: Product warranties, quality assurance, and compliance with Saudi standards

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

12. Dispute Resolution: Process for resolving disputes under Saudi law, including jurisdiction and applicable courts

13. General Provisions: Standard legal clauses including notices, amendments, and governing law

What sections are optional to include in a Agreement For Supply Of Goods On Credit?

1. Islamic Finance Compliance: Detailed Sharia compliance provisions when specific Islamic financing structures are used

2. Security Arrangements: Additional security requirements such as guarantees or pledges when higher credit limits are involved

3. Insurance: Insurance requirements when high-value goods or specific risks need coverage

4. Intellectual Property: IP provisions when branded or proprietary goods are involved

5. Exclusivity: Exclusive supply arrangements when parties agree to exclusive dealing

6. Force Majeure: Detailed force majeure provisions for high-risk or critical supply arrangements

7. Compliance with Export/Import Laws: Additional compliance requirements for international supply arrangements

What schedules should be included in a Agreement For Supply Of Goods On Credit?

1. Schedule 1 - Goods Specification: Detailed technical specifications and quality standards for goods

2. Schedule 2 - Pricing Schedule: Detailed pricing structure, including any volume discounts or price adjustment mechanisms

3. Schedule 3 - Credit Terms: Detailed credit limits, payment schedules, and financial arrangements

4. Schedule 4 - Delivery Locations: List of approved delivery locations and specific delivery requirements

5. Schedule 5 - Key Performance Indicators: Performance metrics and service levels if applicable

6. Appendix A - Order Form Template: Standard form for placing orders under the agreement

7. Appendix B - Quality Control Procedures: Detailed quality control and testing procedures

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Saudi Arabia

Publisher

Ƶ

Document Type

Service Agreement

Cost

Free to use
Relevant legal definitions
















































Clauses










































Relevant Industries

Manufacturing

Retail

Construction

Automotive

Electronics

Consumer Goods

Industrial Equipment

Food and Beverage

Pharmaceuticals

Chemicals

Textiles

Building Materials

Home Appliances

Agricultural Products

Relevant Teams

Legal

Finance

Procurement

Supply Chain

Commercial

Credit Control

Operations

Risk Management

Compliance

Sales

Treasury

Relevant Roles

Commercial Director

Procurement Manager

Supply Chain Manager

Credit Controller

Finance Director

Legal Counsel

Commercial Manager

Operations Director

Contract Manager

Chief Financial Officer

Sales Director

Risk Manager

Compliance Officer

Treasury Manager

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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