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Purchasers Agreement for Saudi Arabia

Purchasers Agreement Template for Saudi Arabia

A Purchase Agreement under Saudi Arabian law is a legally binding document that governs the sale and purchase of goods or assets between parties, structured in compliance with both Sharia law principles and Saudi commercial regulations. The agreement details the terms and conditions of the purchase, including precise descriptions of goods, pricing, payment terms, delivery requirements, warranties, and dispute resolution mechanisms. It incorporates specific provisions required under Saudi law, such as compliance with Islamic commercial principles, and typically requires execution in Arabic or in dual Arabic-English format for enforceability in Saudi courts.

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What is a Purchasers Agreement?

The Purchase Agreement is a fundamental commercial document used in Saudi Arabia when one party wishes to purchase goods or assets from another party. This agreement type is essential for documenting the terms and conditions of significant purchases, ensuring compliance with both Sharia law principles and Saudi commercial regulations. The document typically includes detailed specifications of the goods, pricing structures, payment terms, delivery requirements, warranties, and dispute resolution mechanisms. It's particularly important in the Saudi context as it must conform to Islamic commercial principles, avoiding elements such as uncertainty (gharar) or interest (riba). The Purchase Agreement should be drafted in Arabic or bilingual format (Arabic-English) to ensure enforceability in Saudi courts and should incorporate relevant provisions from the Saudi Commercial Court Law and other applicable regulations.

What sections should be included in a Purchasers Agreement?

1. Parties: Identification of the seller and purchaser with full legal names, addresses, and commercial registration details

2. Background: Context of the purchase agreement and brief description of the transaction

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

4. Subject Matter of Sale: Detailed description of the goods or assets being purchased

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

6. Delivery Terms: Timing, location, and method of delivery, including risk transfer

7. Inspection and Acceptance: Procedures for inspecting goods and accepting or rejecting delivery

8. Warranties and Representations: Seller's warranties regarding the goods and both parties' general representations

9. Title and Risk: Transfer of ownership and risk provisions

10. Termination: Circumstances under which the agreement can be terminated and consequences

11. Force Majeure: Events excusing performance and procedures for handling such situations

12. Governing Law and Jurisdiction: Confirmation of Saudi law application and jurisdiction

13. Dispute Resolution: Procedures for resolving disputes, including Saudi court jurisdiction or arbitration

14. Notices: How formal communications between parties should be made

15. Execution: Signature blocks and execution requirements

What sections are optional to include in a Purchasers Agreement?

1. Intellectual Property Rights: Required when the purchase involves software, technology, or branded goods

2. Compliance with Laws: Detailed section needed for regulated industries or specific compliance requirements

3. Insurance: Required for high-value goods or where specific insurance coverage is necessary

4. Confidentiality: Important when the transaction involves sensitive information or trade secrets

5. Import/Export Provisions: Required for international transactions

6. Training and Support: Necessary when the purchase includes technical equipment or systems requiring training

7. Maintenance and After-Sales Service: Important for technical equipment or ongoing service requirements

8. Anti-Corruption Provisions: Required for high-value transactions or government-related purchases

What schedules should be included in a Purchasers Agreement?

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

2. Schedule 2 - Pricing Schedule: Detailed breakdown of prices, especially for multiple items or varying quantities

3. Schedule 3 - Delivery Schedule: Detailed delivery timelines and locations, especially for multiple deliveries

4. Schedule 4 - Warranty Terms: Detailed warranty conditions and procedures

5. Schedule 5 - Testing and Acceptance Criteria: Detailed procedures for testing and accepting the goods

6. Schedule 6 - Service Level Agreement: Required when the purchase includes ongoing service components

7. Appendix A - Required Documentation: List of documents required for the transaction (e.g., certificates, permits)

8. Appendix B - Form of Acceptance Certificate: Template for formal acceptance of goods

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

Manufacturing

Retail

Technology

Construction

Healthcare

Energy

Automotive

Telecommunications

Financial Services

Real Estate

Industrial Equipment

Consumer Goods

Agriculture

Mining

Education

Logistics

Relevant Teams

Legal

Procurement

Finance

Commercial

Operations

Supply Chain

Risk & Compliance

Business Development

Administration

Internal Audit

Relevant Roles

Procurement Manager

Legal Counsel

Commercial Director

Supply Chain Manager

Chief Financial Officer

Contract Manager

Purchasing Officer

General Manager

Operations Director

Risk Manager

Compliance Officer

Business Development Manager

Finance Director

Chief Executive Officer

Legal Director

Sourcing 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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