The Sales Cooperation Agreement is essential for businesses seeking to establish formal sales partnerships in Saudi Arabia. This document is particularly relevant when companies wish to collaborate in selling products or services while maintaining separate legal entities and avoiding the stricter requirements of a formal agency or distributorship arrangement. The agreement must comply with Saudi Arabian law, including the Commercial Agencies Law and relevant Sharia principles, while addressing practical commercial considerations such as territory definitions, commission structures, and performance metrics. It's commonly used when entering new markets, expanding sales channels, or establishing strategic partnerships in Saudi Arabia, and typically includes detailed provisions for regulatory compliance, risk allocation, and operational responsibilities.
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1. Parties: Identification of the contracting parties with full legal names and registration details as per Saudi Commercial Registration requirements
2. Background: Context of the cooperation arrangement and brief description of each party's business
3. Definitions: Key terms used throughout the agreement, including Products, Territory, and specific commercial terms
4. Scope of Cooperation: Detailed description of the cooperation arrangement, including sales territories and product ranges
5. Appointment and Status of Parties: Nature of the relationship, confirming independent contractor status and non-exclusivity (if applicable)
6. Rights and Obligations: Detailed responsibilities of each party including sales targets, marketing efforts, and support services
7. Financial Terms: Commission structures, payment terms, and currency considerations in compliance with Sharia principles
8. Intellectual Property Rights: Protection and usage rights of trademarks, patents, and other IP in the Territory
9. Confidentiality: Protection of confidential information exchanged during the cooperation
10. Term and Termination: Duration of the agreement and circumstances for termination
11. Compliance: Compliance with Saudi laws, including Commercial Agencies Law and Anti-Commercial Concealment Law
12. Governing Law and Dispute Resolution: Confirmation of Saudi law governance and dispute resolution mechanisms
1. Training and Support: Used when specific training obligations exist for product knowledge transfer
2. Marketing and Promotion: Include when parties have specific marketing responsibilities or joint promotion activities
3. Exclusivity Provisions: When the arrangement is exclusive for certain territories or products
4. Performance Targets: When specific sales targets or KPIs are part of the arrangement
5. Import/Export Provisions: When products need to be imported/exported as part of the cooperation
6. Insurance Requirements: When specific insurance coverage is required for the cooperation
7. Data Protection: When personal data processing is involved in the cooperation
8. Force Majeure: When parties want specific provisions for unforeseen circumstances
1. Product Schedule: Detailed list of products covered under the cooperation agreement
2. Territory Schedule: Detailed definition of geographical areas covered by the agreement
3. Commission Structure: Detailed breakdown of commission rates and calculation methods
4. Service Level Requirements: Specific performance metrics and service standards
5. Trademark Usage Guidelines: Rules for using the principal's trademarks and branding
6. Reporting Templates: Standard formats for regular performance and sales reporting
7. Technical Specifications: Technical details of products or services covered
8. Compliance Procedures: Detailed procedures for ensuring compliance with Saudi regulations
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Technology
Consumer Goods
Industrial Products
Healthcare
Automotive
Electronics
Telecommunications
Construction Materials
Professional Services
Retail
Energy
Chemical Products
Food and Beverage
Relevant Teams
Legal
Sales
Business Development
Compliance
Operations
Commercial
International Business
Partner Management
Contract Administration
Risk Management
Relevant Roles
Sales Director
Business Development Manager
Commercial Director
Legal Counsel
Compliance Officer
Chief Commercial Officer
Regional Sales Manager
Partnership Manager
Contract Manager
Operations Director
Chief Executive Officer
Managing Director
International Business Manager
Sales Operations Manager
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