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International Sales Contract for Saudi Arabia

International Sales Contract Template for Saudi Arabia

A comprehensive legal agreement governed by Saudi Arabian law that facilitates international sale transactions between parties, ensuring compliance with both Saudi regulations and Sharia principles. The contract addresses crucial elements including product specifications, payment terms, delivery conditions, risk transfer, and dispute resolution mechanisms. It incorporates necessary provisions for cross-border trade, customs requirements, and regulatory compliance while maintaining alignment with Saudi Arabia's Commercial Courts Law and related trade regulations. The document includes specific considerations for international payment mechanisms, quality control procedures, and warranty terms suitable for cross-border commercial relationships.

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International Sales Contract

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What is a International Sales Contract?

The International Sales Contract is essential for businesses engaging in cross-border trade with Saudi Arabia, providing a structured framework for commercial transactions while ensuring compliance with Saudi law and Sharia principles. This document is particularly crucial when establishing clear terms for international sale of goods, including detailed specifications of products, delivery terms, payment conditions, and risk allocation. It's designed to protect both parties' interests while navigating the complexities of international trade within the Saudi legal framework. The contract addresses key aspects such as customs requirements, regulatory compliance, quality standards, and dispute resolution mechanisms, making it suitable for both one-time transactions and ongoing supply relationships. Special attention is given to Sharia-compliant payment terms and Saudi Arabia's commercial regulations, including requirements under the Commercial Courts Law and related trade legislation.

What sections should be included in a International Sales Contract?

1. Parties: Identification of seller and buyer with full legal names, registration details, and addresses

2. Background: Context of the sale, relationship between parties, and general purpose of the agreement

3. Definitions and Interpretation: Key terms used in the agreement, including trade terms (preferably with reference to Incoterms)

4. Sale and Purchase Obligations: Core obligations of sale and purchase, including product specifications and quantity

5. Price and Payment Terms: Price, currency, payment method, and timing (ensuring Sharia compliance)

6. Delivery and Risk: Delivery terms, timing, location, and transfer of risk (referring to applicable Incoterms)

7. Quality and Inspection: Product quality specifications, inspection rights, and quality assurance processes

8. Title and Risk Transfer: Point of transfer of ownership and risk in the goods

9. Warranties and Representations: Standard warranties regarding product quality, compliance with laws, and authority to contract

10. Compliance with Laws: Obligations to comply with Saudi law, export/import regulations, and international trade requirements

11. Term and Termination: Duration of agreement and grounds for termination

12. Dispute Resolution: Process for resolving disputes, including jurisdiction and applicable law provisions

13. Force Majeure: Events excusing performance and consequences

14. General Provisions: Standard boilerplate clauses including notices, amendments, and entire agreement

What sections are optional to include in a International Sales Contract?

1. Insurance: Required when specific insurance arrangements need to be specified, particularly for high-value goods or risky shipments

2. Intellectual Property: Needed when the goods involve patents, trademarks, or other IP rights

3. Confidentiality: Important when sensitive information will be exchanged during the course of the transaction

4. After-Sales Service: Required when the goods need ongoing support or maintenance

5. Training and Support: Necessary when the goods require specific training for operation or maintenance

6. Export/Import Licenses: Required when dealing with regulated goods requiring special permits

7. Bank Guarantees: Important for high-value transactions or when required by Saudi regulations

8. Product Registration: Necessary for regulated products requiring registration in Saudi Arabia

9. Customs and Duties: Detailed section needed when specific customs arrangements or duty responsibilities need to be allocated

What schedules should be included in a International Sales Contract?

1. Product Specifications: Detailed technical specifications of the goods

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

3. Delivery Schedule: Timing and details of deliveries, especially for multiple shipments

4. Quality Standards: Detailed quality requirements and testing procedures

5. Required Documentation: List of required shipping, customs, and compliance documents

6. Form of Bank Guarantee: Standard form for any required bank guarantees

7. Warranty Terms: Detailed warranty terms and claims procedures

8. Compliance Certificates: Required certificates and compliance documentation

9. Service Level Agreement: Details of any required service levels and performance metrics

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

Agreement Contract

Cost

Free to use
Relevant legal definitions



















































Clauses


















































Relevant Industries

Manufacturing

Consumer Goods

Industrial Equipment

Technology

Automotive

Pharmaceuticals

Food and Beverage

Construction Materials

Electronics

Textiles

Chemical Products

Agricultural Products

Medical Equipment

Machinery

Relevant Teams

Legal

Commercial

Sales

Procurement

Finance

Compliance

International Trade

Supply Chain

Operations

Risk Management

Business Development

Logistics

Relevant Roles

Commercial Director

International Sales Manager

Chief Commercial Officer

Export Manager

Import Manager

Supply Chain Manager

Procurement Manager

Legal Counsel

Compliance Officer

Contract Manager

Business Development Manager

Trade Finance Manager

Operations Manager

Logistics Manager

Chief Financial Officer

Risk 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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