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Special Purchase Agreement for Saudi Arabia

Special Purchase Agreement Template for Saudi Arabia

A Special Purchase Agreement under Saudi Arabian law is a comprehensive commercial contract that governs the purchase of specific goods, services, or equipment, typically involving specialized or high-value items. The agreement must comply with both Shariah principles and Saudi commercial regulations, including the Commercial Courts Law and relevant sector-specific regulations. It contains detailed provisions for specifications, pricing, delivery terms, warranties, and dispute resolution mechanisms, while ensuring alignment with local content requirements and Saudi Arabia's economic development objectives.

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What is a Special Purchase Agreement?

The Special Purchase Agreement is a crucial document used in Saudi Arabia when organizations need to procure specific, often specialized or high-value goods, services, or equipment. This agreement type is particularly relevant for transactions requiring detailed technical specifications, custom requirements, or complex delivery arrangements. It must comply with Saudi Arabian law, including Shariah principles and the Commercial Courts Law, while also considering sector-specific regulations and local content requirements. The document typically includes comprehensive terms covering technical specifications, pricing structures, delivery schedules, acceptance criteria, warranty provisions, and dispute resolution mechanisms. It's commonly used in both private sector transactions and government procurement, often requiring additional considerations for international trade regulations when foreign suppliers are involved.

What sections should be included in a Special Purchase Agreement?

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

2. Background: Context of the agreement, relationship between parties, and general purpose of the purchase

3. Definitions: Key terms used throughout the agreement, including technical terms specific to the goods/services being purchased

4. Subject Matter: Detailed description of goods/services being purchased, including specifications and quantities

5. Purchase Price and Payment Terms: Price, payment schedule, and method of payment in compliance with Shariah principles

6. Delivery and Acceptance: Delivery terms, timelines, inspection procedures, and acceptance criteria

7. Warranties and Representations: Warranties regarding quality, fitness for purpose, and compliance with Saudi regulations

8. Term and Termination: Duration of agreement and circumstances under which it may be terminated

9. Confidentiality: Obligations regarding confidential information and trade secrets

10. Force Majeure: Events excusing performance, adapted to Saudi law requirements

11. Governing Law and Dispute Resolution: Specification of Saudi law as governing law and dispute resolution mechanisms

12. Notices: Process for formal communications between parties

What sections are optional to include in a Special Purchase Agreement?

1. Intellectual Property Rights: Include when the purchase involves software, technology, or licensed products

2. Export/Import Requirements: Include for international transactions requiring customs clearance

3. Training and Support: Include when the purchase includes technical equipment or systems requiring training

4. Insurance: Include when specific insurance requirements are needed for high-value or high-risk purchases

5. Security Requirements: Include when dealing with sensitive equipment or information

6. Environmental Compliance: Include when the purchase involves environmental considerations or hazardous materials

7. Local Content Requirements: Include when subject to Saudi Arabia's local content requirements

8. Performance Guarantees: Include for complex or high-value purchases requiring performance bonds

What schedules should be included in a Special Purchase Agreement?

1. Schedule 1 - Technical Specifications: Detailed technical specifications of goods/services being purchased

2. Schedule 2 - Pricing Schedule: Detailed breakdown of prices, including unit prices and volume discounts

3. Schedule 3 - Delivery Schedule: Detailed timeline for delivery and implementation milestones

4. Schedule 4 - Acceptance Testing Procedures: Detailed procedures for testing and accepting the goods/services

5. Schedule 5 - Warranty Terms: Detailed warranty terms and support procedures

6. Schedule 6 - Required Certifications: List of required regulatory certifications and compliance documents

7. Appendix A - Form of Purchase Order: Standard form for issuing purchase orders under the agreement

8. Appendix B - Service Level Agreement: Detailed service levels and performance metrics if applicable

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

Oil & Gas

Manufacturing

Technology & Telecommunications

Healthcare & Medical Equipment

Construction & Infrastructure

Defense & Security

Energy & Utilities

Industrial Equipment

Transportation & Logistics

Mining & Minerals

Relevant Teams

Procurement

Legal

Finance

Operations

Supply Chain

Compliance

Technical

Project Management

Risk Management

Commercial

Vendor Management

Relevant Roles

Procurement Manager

Contract Manager

Legal Counsel

Commercial Director

Supply Chain Manager

Chief Financial Officer

Technical Director

Operations Manager

Compliance Officer

Project Manager

Business Development Manager

Risk Manager

Senior Buyer

Vendor Manager

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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