The Term Service Contract is a fundamental document used in Saudi Arabia for establishing and governing ongoing service relationships between parties. It is particularly relevant when services are to be provided over a fixed period with defined deliverables and performance metrics. This contract type is designed to comply with Saudi Arabian law, including both civil law requirements and Shari'ah principles, making it suitable for use in the Kingdom. The document typically includes comprehensive details about service scope, delivery standards, payment terms, and compliance requirements, while also addressing specific Saudi Arabian regulatory considerations such as Saudization requirements where applicable. It's commonly used in both private sector arrangements and government contracting, with variations depending on the service nature and parties involved.
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1. Parties: Identification of the service provider and service recipient, including full legal names, commercial registration numbers, and authorized representatives
2. Background: Context of the agreement, brief description of the parties' business activities, and their intentions regarding the service arrangement
3. Definitions: Defined terms used throughout the agreement for clarity and consistency
4. Scope of Services: Detailed description of the services to be provided, including specific deliverables and performance standards
5. Term and Duration: Contract duration, commencement date, and any renewal provisions
6. Payment Terms: Service fees, payment schedule, invoicing procedures, and currency specifications
7. Service Provider Obligations: Detailed responsibilities and commitments of the service provider
8. Service Recipient Obligations: Responsibilities and commitments of the service recipient, including provision of necessary information and access
9. Performance Standards: Quality metrics, KPIs, and service level requirements
10. Compliance with Laws: Obligation to comply with Saudi laws, regulations, and Shari'ah principles
11. Confidentiality: Protection of confidential information and trade secrets
12. Termination: Grounds for termination, notice requirements, and consequences of termination
13. Dispute Resolution: Process for resolving disputes, including jurisdiction and applicable law
14. General Provisions: Standard boilerplate clauses including notices, amendments, and entire agreement
1. Intellectual Property Rights: Ownership and licensing of IP created during service provision - include when services involve creation of intellectual property
2. Insurance: Insurance requirements and coverage obligations - include for high-risk services or when required by industry standards
3. Force Majeure: Provisions for unforeseen circumstances preventing performance - particularly relevant in long-term or critical services
4. Data Protection: Obligations regarding personal data handling - include when services involve processing personal data
5. Non-Competition: Restrictions on competitive activities - include when sharing sensitive business information or methods
6. Assignment and Subcontracting: Rights to transfer obligations or use subcontractors - include for complex services or when subcontracting is anticipated
7. Change Control: Process for managing changes to services or terms - include for long-term or complex service arrangements
8. Business Continuity: Disaster recovery and service continuation requirements - include for critical services
1. Schedule 1 - Service Specifications: Detailed technical specifications and scope of services
2. Schedule 2 - Service Levels: Specific performance metrics, KPIs, and measurement methods
3. Schedule 3 - Pricing and Payment Schedule: Detailed fee structure, payment milestones, and pricing mechanisms
4. Schedule 4 - Key Personnel: Names and roles of key team members from both parties
5. Schedule 5 - Implementation Plan: Timeline and milestones for service implementation
6. Schedule 6 - Technical Requirements: Specific technical standards and requirements for service delivery
7. Appendix A - Required Forms and Templates: Standard forms for service requests, reports, and other routine communications
8. Appendix B - Contact Details: Contact information for key personnel and escalation paths
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