The Business Sales Agreement Contract is a fundamental commercial document used in Saudi Arabia to establish legally binding terms for the sale of goods or services between business entities. This contract type is essential for companies operating within the Saudi market, whether domestic or international, and must comply with both Saudi Commercial Law and Islamic Sharia principles. It's particularly important for transactions requiring detailed terms of sale, delivery specifications, and payment conditions that align with Islamic financial practices. The document should be drafted in accordance with the recent Saudi Commercial Courts Law of 2020 and other relevant regulations under Vision 2030 reforms. This agreement type is commonly used for ongoing business relationships, large-scale purchases, or complex sales arrangements that require comprehensive documentation and clear enforcement mechanisms under Saudi jurisdiction.
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1. Parties: Identification and details of the seller and buyer entities, including commercial registration numbers
2. Background: Context of the agreement and brief description of the business relationship
3. Definitions: Key terms used throughout the agreement with their specific meanings
4. Scope of Sale: Detailed description of products/services being sold and quantities
5. Price and Payment Terms: Agreement on price, payment schedule, and payment methods compliant with Sharia principles
6. Delivery Terms: Delivery schedule, location, and responsibilities for shipping and handling
7. Quality and Specifications: Product quality standards, specifications, and compliance requirements
8. Warranties and Representations: Warranties provided by both parties, including product quality and authority to enter into agreement
9. Title and Risk: Transfer of ownership and risk in the goods
10. Term and Termination: Duration of agreement and circumstances for termination
11. Dispute Resolution: Process for resolving disputes under Saudi law and jurisdiction
12. Force Majeure: Circumstances excusing performance of obligations
13. Confidentiality: Protection of confidential information exchanged during the business relationship
14. Governing Law: Explicit statement of Saudi law governance and Sharia compliance
15. Notices: Method and addresses for official communications between parties
1. Intellectual Property Rights: Include when the sale involves software, technology, or branded products
2. Training and Support: Include when the sale requires after-sales support or training services
3. Insurance: Include when specific insurance requirements are needed for high-value or high-risk products
4. Export/Import Compliance: Include for international sales requiring compliance with trade regulations
5. Performance Bonds: Include when security for performance is required
6. Exclusivity: Include when granting exclusive rights to sell or distribute products
7. Change Control: Include for long-term agreements where specifications might need modification
8. Environmental Compliance: Include when products or services have environmental implications
9. Anti-corruption Compliance: Include for high-value contracts or government-related sales
1. Schedule 1 - Product Specifications: Detailed technical specifications of products being sold
2. Schedule 2 - Pricing Schedule: Detailed pricing information, including any volume discounts or special terms
3. Schedule 3 - Delivery Schedule: Detailed timeline and logistics for product delivery
4. Schedule 4 - Quality Standards: Specific quality requirements and testing procedures
5. Schedule 5 - Warranty Terms: Detailed warranty terms and claim procedures
6. Appendix A - Required Certifications: Copies of required Saudi regulatory certifications
7. Appendix B - Service Level Agreement: Details of any associated service levels and support requirements
8. Appendix C - Contact Details: Key contact information for both parties
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Wholesale Trade
Retail
Technology
Industrial Equipment
Consumer Goods
Automotive
Electronics
Healthcare Products
Construction Materials
Food and Beverage
Telecommunications
Energy
Chemicals
Textiles
Relevant Teams
Legal
Sales
Procurement
Finance
Compliance
Operations
Commercial Operations
Business Development
Supply Chain
Risk Management
Contract Administration
Account Management
Relevant Roles
Chief Executive Officer
Commercial Director
Sales Manager
Procurement Manager
Legal Counsel
Contract Manager
Business Development Manager
Operations Director
Finance Manager
Compliance Officer
Supply Chain Manager
Account Executive
General Manager
Chief Financial Officer
Risk Manager
Commercial Operations Manager
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