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General Agent Contract for Saudi Arabia

General Agent Contract Template for Saudi Arabia

A comprehensive legal agreement governed by Saudi Arabian law that establishes and regulates a commercial agency relationship between a principal and an agent. The document complies with the Saudi Commercial Agencies Law and Sharia principles, defining the scope of authority, territorial rights, commission structure, and obligations of both parties. It includes mandatory provisions for registration with the Ministry of Commerce and addresses key aspects such as exclusivity, performance requirements, and dispute resolution in accordance with Saudi Arabian legal framework.

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General Agent Contract

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What is a General Agent Contract?

The General Agent Contract is essential for businesses seeking to establish commercial representation in Saudi Arabia through authorized agents. This document is particularly crucial as Saudi law requires certain products and services to be distributed exclusively through registered Saudi agents. The agreement must comply with the Commercial Agencies Law (Royal Decree No. M/11) and Sharia principles, and requires registration with the Ministry of Commerce. It establishes the framework for the agency relationship, including territorial rights, commission structures, performance expectations, and compliance requirements. The document is typically used when a foreign company (principal) wants to appoint a Saudi-based representative (agent) to promote and sell their products or services in the Kingdom, and must address specific requirements under Saudi law regarding agency relationships, termination rights, and dispute resolution.

What sections should be included in a General Agent Contract?

1. Parties: Identification of Principal and Agent with full legal names, addresses, and commercial registration details

2. Background: Context of the agreement and brief description of the parties' business activities

3. Definitions: Key terms used throughout the agreement, including Products, Territory, and Applicable Laws

4. Appointment and Scope: Express appointment of agent and detailed scope of authority, including territorial limits

5. Registration Requirements: Obligations regarding registration with Ministry of Commerce and maintenance of registrations

6. Rights and Obligations of Agent: Detailed responsibilities, performance standards, and territorial obligations of the agent

7. Rights and Obligations of Principal: Principal's commitments, support obligations, and supply requirements

8. Commission Structure: Detailed commission calculations, payment terms, and currency specifications

9. Term and Termination: Duration of agreement and grounds for termination in compliance with Saudi law

10. Confidentiality: Protection of confidential information and trade secrets

11. Compliance with Laws: Obligation to comply with Saudi laws, including Sharia principles

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

13. General Provisions: Standard clauses including notices, amendments, and entire agreement provisions

What sections are optional to include in a General Agent Contract?

1. Exclusivity: Used when granting exclusive rights to the agent in the specified territory

2. Performance Targets: Include when specific sales or performance targets are required

3. Training and Support: Used when principal provides specific training or support services

4. Marketing and Promotion: Include when agent has specific marketing obligations

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

6. Non-Competition: Include when restricting agent's ability to represent competing products

7. Stock Requirements: Used when agent must maintain specific inventory levels

8. Sub-Agents: Include when agent has right to appoint sub-agents

9. Force Majeure: Used to address unforeseen circumstances preventing performance

What schedules should be included in a General Agent Contract?

1. Products Schedule: Detailed list of products covered by the agency agreement

2. Territory Schedule: Detailed description of geographical territory and any exclusions

3. Commission Schedule: Detailed breakdown of commission rates and calculation methods

4. Performance Metrics: Specific targets and KPIs for agent performance evaluation

5. Required Registrations: List of required governmental registrations and licenses

6. Technical Requirements: Technical specifications and standards for product handling

7. Training Schedule: Details of required training programs and frequency

8. Approved Sub-Agents: List of pre-approved sub-agents if applicable

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

Agency Agreement

Cost

Free to use
Relevant legal definitions














































Clauses








































Relevant Industries

Manufacturing

Industrial Equipment

Consumer Goods

Automotive

Technology

Healthcare and Medical Devices

Construction Materials

Food and Beverage

Luxury Goods

Telecommunications

Pharmaceuticals

Electronics

Agricultural Products

Fashion and Retail

Relevant Teams

Legal

Commercial Operations

Business Development

Sales

Compliance

International Trade

Distribution

Corporate Affairs

Contract Administration

Agency Management

Relevant Roles

Commercial Director

Business Development Manager

Legal Counsel

Compliance Officer

Sales Director

Managing Director

Chief Executive Officer

Contract Manager

Regional Manager

Operations Director

International Trade Manager

Distribution Manager

Agency Relations Manager

Commercial Operations 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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