The SLA Agency agreement is essential for businesses operating in Saudi Arabia through local agents or service providers where specific performance standards need to be maintained and measured. This document type combines elements of traditional agency agreements with detailed service level commitments, making it particularly relevant for technical, professional, or managed services arrangements. The agreement must comply with Saudi Arabia's Commercial Agencies Law, e-commerce regulations, and Sharia principles, while also addressing modern business requirements for measurable performance standards. It's typically used when a foreign or local principal needs to establish a formal agency relationship with service level commitments, ensuring both legal compliance and operational effectiveness. The document includes comprehensive provisions for performance measurement, reporting requirements, compensation structures, and dispute resolution mechanisms, all tailored to the Saudi Arabian legal framework.
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1. Parties: Identification of the principal and agent, including full legal names, commercial registration details, and authorized representatives
2. Background: Context of the agreement, relationship background, and purpose of the agency arrangement
3. Definitions: Detailed definitions of technical terms, service levels, and key concepts used throughout the agreement
4. Appointment and Scope: Formal appointment of agent, territory definition, and scope of services
5. Service Levels: Detailed description of required service levels, performance standards, and measurement criteria
6. Performance Monitoring: Methods and frequency of performance measurement, reporting requirements, and review processes
7. Fees and Payment: Commission structure, payment terms, and calculation methods compliant with Sharia principles
8. Obligations of Principal: Principal's responsibilities, support requirements, and resource commitments
9. Obligations of Agent: Agent's duties, service delivery requirements, and compliance obligations
10. Compliance: Requirements for compliance with Saudi laws, regulations, and Sharia principles
11. Term and Termination: Duration of agreement, renewal terms, and termination provisions
12. Governing Law and Dispute Resolution: Confirmation of Saudi law governance and dispute resolution procedures
1. Data Protection: Required when personal data processing is involved, detailing compliance with Saudi data protection laws
2. Intellectual Property: Needed when the agency involves licensed materials or brand usage
3. Non-Competition: Include when exclusivity or market protection is required
4. Force Majeure: Optional but recommended to address unforeseen circumstances affecting performance
5. Insurance: Include when specific insurance coverage is required for the agency services
6. Transition Services: Required when complex handover procedures need to be detailed
7. Confidentiality: Optional detailed confidentiality provisions beyond standard terms
8. Training and Support: Include when specific training or support requirements exist
1. Service Level Specifications: Detailed technical specifications of required service levels and performance metrics
2. Fee Schedule: Detailed breakdown of commission structures and payment calculations
3. Performance Measurement Criteria: Specific KPIs, measurement methodologies, and reporting templates
4. Territory Definition: Detailed description of geographical or customer segment coverage
5. Compliance Requirements: Specific regulatory and Sharia compliance requirements
6. Operating Procedures: Detailed procedures for service delivery and performance monitoring
7. Required Reports: Templates and specifications for required performance and activity reports
8. Escalation Procedures: Process for handling service level failures and dispute resolution
Relevant legal definitions
Clauses
Relevant Industries
Information Technology
Telecommunications
Professional Services
Manufacturing
Logistics
Healthcare
Financial Services
Real Estate
Construction
Retail
Energy
Consulting
Relevant Teams
Legal
Operations
Compliance
Commercial
Service Delivery
Quality Assurance
Business Development
Contract Management
Performance Management
Regional Management
Relevant Roles
Commercial Director
Legal Counsel
Operations Manager
Compliance Officer
Business Development Manager
Contract Manager
Service Delivery Manager
Performance Manager
Regional Director
Quality Assurance Manager
Agency Relationship Manager
Chief Operating Officer
Head of Legal
Managing Director
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