Document background
The Master Vendor Agreement serves as the primary contractual framework for establishing and managing long-term vendor relationships in Saudi Arabia. This document is essential when a company plans to engage in regular, ongoing commercial transactions with a vendor for goods or services. The agreement encompasses crucial elements required under Saudi Arabian law, including commercial agency requirements, VAT considerations, and Shariah-compliant provisions where applicable. It provides a streamlined approach to vendor management by setting standard terms that apply to all subsequent purchase orders or statements of work, eliminating the need to negotiate terms for each transaction. The Master Vendor Agreement includes comprehensive provisions for compliance, risk management, and dispute resolution within the Saudi Arabian legal context, while maintaining flexibility to accommodate various types of goods or services through its schedules and appendices.
