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Direct Sales Contract for Saudi Arabia

Direct Sales Contract Template for Saudi Arabia

A comprehensive legal agreement governed by Saudi Arabian law and Sharia principles, designed to facilitate direct sales transactions between parties. This contract establishes the terms and conditions for the sale of goods, including pricing, delivery, warranties, and dispute resolution mechanisms. It ensures compliance with Saudi commercial regulations while providing a clear framework for business transactions, protecting both seller and buyer interests through detailed specifications of rights, obligations, and remedies under Saudi jurisdiction.

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Direct Sales Contract

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What is a Direct Sales Contract?

The Direct Sales Contract is essential for businesses operating in Saudi Arabia who engage in direct selling of products or services. This document is particularly crucial as it must comply with both Saudi commercial law and Sharia principles, which form the foundation of the Saudi legal system. The contract is typically used when a seller wishes to establish a clear, legally binding agreement for the direct sale of goods to a buyer, whether another business or an individual consumer. It includes critical elements such as detailed product specifications, pricing structures, delivery terms, warranty provisions, and dispute resolution mechanisms that align with Saudi jurisdiction. The document also addresses specific requirements under Saudi commercial regulations, including VAT compliance, consumer protection measures, and anti-fraud provisions. This Direct Sales Contract serves as a vital tool for protecting both parties' interests while ensuring smooth commercial transactions in the Saudi market.

What sections should be included in a Direct Sales Contract?

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

2. Background: Context of the sale and brief description of the parties' intentions

3. Definitions: Definitions of key terms used throughout the agreement

4. Subject Matter of Sale: Detailed description of the goods being sold, including specifications, quantity, and quality standards

5. Price and Payment Terms: Purchase price, payment schedule, method of payment, and any applicable taxes

6. Delivery Terms: Delivery conditions, timeline, location, and responsibility for transportation costs

7. Title and Risk: Point at which ownership and risk transfers from seller to buyer

8. Warranties and Representations: Guarantees regarding the goods' quality, condition, and compliance with specifications

9. Inspection and Acceptance: Buyer's rights to inspect goods and procedures for acceptance or rejection

10. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

11. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and applicable law

12. Force Majeure: Provisions for unforeseen circumstances preventing contract performance

13. Governing Law: Specification of Saudi law as the governing law and compliance with Sharia principles

14. Notices: Methods and addresses for official communications between parties

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

1. Intellectual Property Rights: Required when the sale involves products with associated intellectual property

2. Confidentiality: Needed when sensitive information will be exchanged during the transaction

3. Insurance: Include when specific insurance requirements are necessary for the goods during transit or storage

4. Export/Import Compliance: Required for international sales or when goods are subject to export/import regulations

5. Training and Support: Include when the sale includes technical products requiring user training or ongoing support

6. Returns and Refunds: Necessary for retail sales or when specific return policies apply

7. Packaging Requirements: Include when specific packaging standards or requirements are necessary

8. Quality Control: Required when specific quality standards or testing procedures must be maintained

What schedules should be included in a Direct Sales Contract?

1. Schedule 1 - Product Specifications: Detailed technical specifications of the goods being sold

2. Schedule 2 - Pricing Schedule: Detailed breakdown of prices, including any volume discounts or special pricing terms

3. Schedule 3 - Delivery Schedule: Detailed timeline and logistics for delivery of goods

4. Schedule 4 - Quality Standards: Specific quality requirements and testing procedures

5. Schedule 5 - Warranty Terms: Detailed warranty conditions and claim procedures

6. Appendix A - Required Documentation: List of required certificates, permits, and documentation

7. Appendix B - After-Sales Service Terms: Details of any after-sales service or support provisions

8. Appendix C - Compliance Certificates: Copies of relevant compliance certificates and regulatory approvals

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Saudi Arabia

Document Type

Contract to Sell

Cost

Free to use
Relevant legal definitions


































Clauses




































Relevant Industries

Retail

Manufacturing

Consumer Goods

Electronics

Automotive

Industrial Equipment

Construction Materials

Medical Supplies

Technology

Food and Beverage

Textiles

Pharmaceuticals

Home Appliances

Office Equipment

Machinery

Relevant Teams

Legal

Sales

Commercial

Procurement

Finance

Operations

Compliance

Risk Management

Supply Chain

Business Development

Contract Administration

Relevant Roles

Sales Director

Commercial Manager

Legal Counsel

Contract Manager

Procurement Manager

Business Development Manager

Operations Manager

Compliance Officer

Finance Manager

Supply Chain Manager

Sales Representative

Account Executive

Risk Manager

General Manager

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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