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Simple Sales Contract for Saudi Arabia

Simple Sales Contract Template for Saudi Arabia

This document is a straightforward sales contract template designed for use in Saudi Arabia, incorporating both Sharia principles and Saudi commercial law requirements. It provides a comprehensive framework for basic sales transactions while ensuring compliance with local regulations, including VAT requirements and commercial registration obligations. The contract covers essential elements such as clear identification of parties, precise description of goods, payment terms, delivery arrangements, and basic warranties, while remaining adaptable for various types of goods and commercial transactions within the Saudi Arabian market.

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What is a Simple Sales Contract?

The Simple Sales Contract is designed for businesses operating in Saudi Arabia who need a straightforward but comprehensive agreement for the sale of goods. This document is particularly useful for routine commercial transactions where parties require a clear, legally compliant framework without complex conditions or unusual terms. It incorporates essential elements required by Saudi commercial law and Sharia principles, making it suitable for both domestic and international parties conducting business in Saudi Arabia. The contract includes standard provisions for goods description, pricing, delivery, and basic warranties, while remaining flexible enough to accommodate various types of products and industry-specific requirements. It's especially valuable for small to medium-sized transactions where parties want to ensure legal protection without the complexity of more elaborate commercial agreements.

What sections should be included in a Simple Sales Contract?

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

2. Background: Brief context of the sale and relationship between parties

3. Definitions: Key terms used throughout the agreement

4. Subject Matter of Sale: Detailed description of the goods being sold

5. Purchase Price: Price, currency, and payment terms including VAT considerations

6. Delivery: Delivery terms, location, timing, and transfer of risk

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

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

9. Termination: Circumstances under which the contract may be terminated

10. Governing Law and Jurisdiction: Confirmation of Saudi law application and jurisdiction

11. Entire Agreement: Standard clause confirming this document represents the complete agreement

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

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

2. Insurance: Include when specific insurance requirements are needed during transit

3. Intellectual Property: Include when the sale involves branded goods or licensed products

4. Confidentiality: Include when sensitive information will be exchanged

5. Force Majeure: Include when parties want specific provisions for unforeseen circumstances

6. Assignment: Include when transfer rights need to be specifically addressed

7. Dispute Resolution: Include when parties want specific dispute resolution procedures beyond court jurisdiction

What schedules should be included in a Simple Sales Contract?

1. Schedule 1 - Specification of Goods: Detailed technical specifications, quantities, and quality standards of goods

2. Schedule 2 - Payment Schedule: Breakdown of payment installments if applicable

3. Schedule 3 - Delivery Schedule: Detailed delivery timelines and locations if multiple deliveries

4. Appendix A - Product Documentation: Any relevant certificates, warranties, or technical documentation

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

Contract to Sell

Cost

Free to use
Relevant legal definitions






















Clauses























Relevant Industries

Retail

Manufacturing

Distribution

Consumer Goods

Industrial Equipment

Electronics

Automotive

Construction Materials

Textiles

Food and Beverage

General Trading

Relevant Teams

Legal

Sales

Procurement

Commercial

Operations

Supply Chain

Compliance

Finance

Business Development

Administration

Relevant Roles

Sales Manager

Procurement Manager

Commercial Director

Business Development Manager

Supply Chain Manager

Contracts Administrator

Legal Counsel

Operations Manager

General Manager

Commercial Officer

Purchasing Officer

Business Owner

Chief Executive Officer

Chief Commercial Officer

Compliance 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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