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Simple Sales Agreement for Saudi Arabia

Simple Sales Agreement Template for Saudi Arabia

A Simple Sales Agreement governed by Saudi Arabian law is a legally binding document that outlines the terms and conditions for the sale and purchase of goods. It incorporates provisions compliant with both Saudi commercial regulations and Sharia principles, covering essential elements such as precise description of goods, payment terms, delivery arrangements, and transfer of ownership. The agreement includes standard warranties and dispute resolution mechanisms aligned with Saudi jurisdiction, while ensuring clarity and fairness in the transaction as required under Islamic commercial principles.

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What is a Simple Sales Agreement?

The Simple Sales Agreement is designed for use in Saudi Arabia when parties need to document a straightforward sale of goods transaction. This agreement template is particularly suitable for business-to-business transactions where the sale involves standard commercial goods without complex delivery or payment arrangements. It complies with Saudi Arabian commercial laws and Sharia principles, making it appropriate for use within the Kingdom. The document typically includes essential terms such as product specifications, pricing, delivery terms, and basic warranties, while remaining simpler than more complex commercial agreements. It's structured to provide adequate protection for both parties while maintaining the clarity and certainty required for effective commercial transactions in Saudi Arabia.

What sections should be included in a Simple Sales Agreement?

1. Parties: Identification of the seller and buyer with full legal names and addresses

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

3. Definitions: Key terms used throughout the agreement

4. Sale and Purchase: Core terms of the sale including description of goods and purchase price

5. Payment Terms: Details of payment including amount, method, and timing

6. Delivery: Terms regarding delivery of goods including timing and location

7. Title and Risk: When ownership and risk transfers from seller to buyer

8. Warranties: Standard warranties regarding quality and condition of goods

9. Termination: Circumstances under which the agreement can be terminated

10. Governing Law: Confirmation of Saudi law as governing law and Sharia compliance

11. Dispute Resolution: Process for resolving disputes under Saudi jurisdiction

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

1. Inspection Rights: Include when buyer requires right to inspect goods before acceptance

2. Installation: Include when seller is responsible for installing the goods

3. Training: Include when seller must provide training on use of goods

4. Intellectual Property: Include when sale involves licensed technology or branded goods

5. Confidentiality: Include when sensitive information will be exchanged

6. Insurance: Include when specific insurance requirements apply to the goods

7. Force Majeure: Include when parties want specific provisions for unforeseen events

8. VAT: Include detailed VAT provisions when transaction is subject to VAT

What schedules should be included in a Simple Sales Agreement?

1. Schedule 1 - Specification of Goods: Detailed technical specifications of goods being sold

2. Schedule 2 - Price List: Detailed breakdown of prices if multiple items or pricing tiers

3. Schedule 3 - Delivery Schedule: Detailed delivery timeline if multiple deliveries

4. Schedule 4 - Warranty Terms: Detailed warranty terms and conditions

5. Appendix A - Required Documentation: List of documents required for the sale (e.g., certificates, permits)

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

Consumer Goods

Technology

Industrial Equipment

Construction Materials

Automotive

Electronics

Furniture and Home Goods

Medical Supplies

Office Equipment

Food and Beverage

Textiles

Relevant Teams

Legal

Sales

Procurement

Commercial

Operations

Supply Chain

Compliance

Business Development

Finance

Administration

Relevant Roles

Sales Manager

Procurement Officer

Commercial Director

Legal Counsel

Business Development Manager

Contract Administrator

Supply Chain Manager

Operations Manager

General Manager

Compliance Officer

Purchase Manager

Account Executive

Chief Commercial Officer

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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