The General Sales Agreement serves as a foundational document for business-to-business sales transactions in Saudi Arabia. It is typically used when establishing ongoing commercial relationships for the sale of goods, whether for single large transactions or recurring sales arrangements. The agreement must comply with Saudi Arabian commercial laws, including the Commercial Court Law (Royal Decree No. M/32) and relevant Sharia principles. This document addresses essential elements such as product specifications, pricing structures, delivery terms, quality standards, and warranty provisions, while ensuring compliance with local regulatory requirements and business practices. It is particularly important for businesses operating in Saudi Arabia to have a well-structured General Sales Agreement that accounts for both international commercial standards and local legal requirements, including consideration of Sharia-compliant payment terms and dispute resolution mechanisms.
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1. Parties: Identification of the seller and buyer with full legal names, commercial registration numbers, and authorized representatives
2. Background: Context of the agreement and general commercial relationship between the parties
3. Definitions: Key terms used throughout the agreement, including technical and commercial terms
4. Scope of Agreement: Details of the products/goods being sold, including specifications and quantities
5. Price and Payment Terms: Pricing structure, payment schedule, and methods (ensuring compliance with Sharia principles regarding interest)
6. Delivery Terms: Delivery schedules, locations, and responsibilities for shipping and handling
7. Quality and Inspection: Quality standards, inspection procedures, and acceptance criteria
8. Warranties and Representations: Seller's warranties regarding products and compliance with Saudi regulations
9. Compliance with Laws: Commitment to comply with Saudi laws, including Sharia principles and commercial regulations
10. Term and Termination: Duration of the agreement and conditions for termination
11. Dispute Resolution: Process for resolving disputes under Saudi law, including jurisdiction and applicable courts
12. Force Majeure: Events excusing performance, adapted to Saudi law context
13. Notices: Communication procedures between parties
14. General Provisions: Standard legal provisions including assignment, amendment, and severability
1. Exclusivity: Terms of exclusive dealing arrangements, used when seller grants exclusive rights to buyer
2. Minimum Purchase Requirements: Minimum order quantities and frequencies, used in ongoing supply relationships
3. Product Training: Terms for product training and support, relevant for technical or complex products
4. Marketing and Branding: Requirements for product marketing and brand representation, important for branded products
5. Import/Export Compliance: Special terms for international sales requiring compliance with import/export regulations
6. Intellectual Property: IP rights and licenses, relevant when branded or proprietary products are involved
7. Confidentiality: Protection of confidential information, important when sensitive information is shared
8. Insurance Requirements: Specific insurance obligations, relevant for high-value or high-risk products
9. Product Returns: Procedures for product returns and replacements, important for retail or consumer goods
10. Performance Metrics: KPIs and performance standards, used in long-term supply relationships
1. Product Specifications: Detailed technical specifications of products
2. Price List: Comprehensive pricing details including any volume discounts
3. Delivery Schedule: Detailed delivery timelines and locations
4. Quality Standards: Specific quality requirements and testing procedures
5. Warranty Terms: Detailed warranty terms and claim procedures
6. Service Level Agreement: Specific performance metrics and service standards
7. Authorized Representatives: List of authorized signatories and contact persons
8. Commercial Registration Documents: Copies of relevant commercial registrations and licenses
9. Payment Schedule: Detailed payment terms and milestone payments if applicable
10. Territory Definition: Geographical areas covered by the agreement if relevant
Relevant legal definitions
Clauses
Relevant Industries
Retail
Manufacturing
Consumer Goods
Industrial Products
Technology
Automotive
Construction Materials
Electronics
Food and Beverage
Pharmaceuticals
Textile and Apparel
Chemical Products
Industrial Equipment
Home and Garden Products
Relevant Teams
Legal
Sales
Commercial
Procurement
Business Development
Compliance
Supply Chain
Operations
Contract Administration
Risk Management
Relevant Roles
Sales Director
Commercial Manager
Legal Counsel
Procurement Manager
Business Development Manager
Contract Administrator
Chief Commercial Officer
Sales Operations Manager
Compliance Officer
Supply Chain Manager
General Manager
Account Executive
Commercial Director
Legal Manager
Chief Legal Officer
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