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Private Sales Agreement for Saudi Arabia

Private Sales Agreement Template for Saudi Arabia

A Private Sales Agreement governed by Saudi Arabian law is a legally binding document that facilitates the sale and purchase of goods or assets between private parties. This agreement must comply with both Saudi commercial regulations and Sharia law principles, making it distinct from similar agreements in other jurisdictions. The document outlines essential terms including the description of goods, purchase price, payment terms, delivery conditions, and warranties, while ensuring all provisions align with Islamic commercial principles. It includes specific provisions required under Saudi law for enforceability and typically incorporates local dispute resolution mechanisms.

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What is a Private Sales Agreement?

The Private Sales Agreement is a fundamental commercial document used in Saudi Arabia for transactions between private parties involving the sale and purchase of goods or assets. This document is essential when conducting business in Saudi Arabia, whether for one-time sales or recurring transactions, and must be structured to comply with both modern commercial regulations and traditional Islamic law principles. The agreement typically includes comprehensive details about the transaction, including precise descriptions of the goods, payment terms, delivery arrangements, and warranties. It's particularly important in the Saudi context as it provides a clear framework for the transaction while ensuring compliance with local legal requirements, including the Commercial Courts Law of 2020 and Sharia principles. The document serves as both a legal record of the transaction and a guide for its execution, making it invaluable for risk management and dispute prevention.

What sections should be included in a Private Sales Agreement?

1. Parties: Identification and details of the seller and buyer, including their full legal names, addresses, and commercial registration numbers

2. Background: Context of the sale and brief description of the transaction purpose

3. Definitions: Key terms used throughout the agreement defined for clarity and consistency

4. Subject Matter of Sale: Detailed description of the goods being sold, including quantity, quality, and specifications

5. Purchase Price: The agreed price, currency, and payment terms including any deposits or installments

6. Delivery Terms: Timing, location, and method of delivery, including risk transfer points

7. Title and Risk: When and how ownership transfers, and allocation of risk during transit

8. Warranties and Representations: Seller's guarantees regarding the goods and both parties' authority to enter into the agreement

9. Inspection and Acceptance: Buyer's rights to inspect goods and procedures for acceptance or rejection

10. Term and Termination: Duration of the agreement and circumstances allowing early termination

11. Governing Law and Jurisdiction: Confirmation of Saudi law application and jurisdiction for disputes

12. Dispute Resolution: Process for handling disputes, including mediation and arbitration procedures

13. Force Majeure: Circumstances excusing performance and procedures during force majeure events

14. Notices: How formal communications between parties should be made and delivered

15. General Provisions: Standard boilerplate clauses including entire agreement, amendments, and severability

What sections are optional to include in a Private Sales Agreement?

1. Sharia Compliance Declaration: Explicit statement of compliance with Islamic law principles - required for transactions involving financial elements that must explicitly comply with Sharia

2. Intellectual Property Rights: Required when the sale involves goods with associated intellectual property

3. Confidentiality: Important when the transaction involves sensitive commercial information

4. Insurance: Needed when specific insurance requirements apply to the goods during transit or storage

5. Export/Import Compliance: Required for international sales or goods subject to export/import regulations

6. Quality Assurance: Important for technical or specialized products requiring specific quality standards

7. Training and Support: Necessary when the sold goods require operational training or ongoing support

8. Spare Parts and Maintenance: Relevant for mechanical or technical equipment sales

What schedules should be included in a Private Sales Agreement?

1. Schedule 1 - Product Specifications: Detailed technical specifications of the goods being sold

2. Schedule 2 - Pricing Schedule: Detailed breakdown of prices, especially if multiple items or pricing tiers are involved

3. Schedule 3 - Delivery Schedule: Detailed timeline and logistics for delivery, especially for multiple shipments

4. Schedule 4 - Warranty Terms: Detailed warranty conditions and claim procedures

5. Schedule 5 - Testing and Acceptance Procedures: Detailed procedures for testing and accepting the goods

6. Appendix A - Required Certificates: Copies of quality certificates, origin certificates, or other required documentation

7. Appendix B - Commercial Registration Documents: Copies of both parties' commercial registration and authorization documents

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

Purchase Agreement

Cost

Free to use
Relevant legal definitions








































Clauses








































Relevant Industries

Retail

Manufacturing

Real Estate

Technology

Consumer Goods

Industrial Equipment

Automotive

Electronics

Furniture

Construction Materials

Textiles

Agricultural Products

Medical Equipment

Office Supplies

Luxury Goods

Relevant Teams

Legal

Commercial

Procurement

Sales

Business Development

Compliance

Risk Management

Operations

Finance

Supply Chain

Contract Administration

Relevant Roles

Legal Counsel

Commercial Director

Procurement Manager

Sales Manager

Business Development Manager

Contract Administrator

Compliance Officer

Risk Manager

Operations Manager

General Manager

Chief Financial Officer

Supply Chain Manager

Commercial Operations Manager

Legal Director

Business Owner

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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