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Agency Contract Template for Saudi Arabia

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Key Requirements PROMPT example:

Agency Contract

"I need an Agency Contract for appointing an exclusive agent in Riyadh to distribute our cloud computing software products, with the agreement to commence in January 2025 and include specific performance targets and technical support obligations."

Document background
The Agency Contract is a crucial document for businesses seeking to establish or maintain a commercial presence in Saudi Arabia through authorized representatives. This agreement type is specifically regulated under Saudi Arabian Commercial Agencies Law and must comply with Shariah principles. Used when a principal wishes to appoint an agent to represent their interests in Saudi Arabia, the contract requires careful consideration of local legal requirements, including mandatory registration with the Ministry of Commerce. The document typically includes detailed provisions on territorial rights, commission structures, performance expectations, and compliance obligations. Recent reforms in Saudi commercial law and foreign investment regulations have made this document increasingly important for businesses participating in Saudi Arabia's economic transformation under Vision 2030.
Suggested Sections

1. Parties: Identification of Principal and Agent with full legal names, addresses, and commercial registration details

2. Background: Context of the agency relationship and brief description of the Principal's business and intended agency arrangement

3. Definitions: Key terms used throughout the agreement, including Products/Services, Territory, and Commission terms

4. Appointment and Scope: Clear statement of agent's appointment, whether exclusive or non-exclusive, and detailed scope of authority

5. Territory: Precise definition of the geographical area where the agent is authorized to operate

6. Duration and Renewal: Term of the agreement, including commencement date and renewal provisions

7. Rights and Obligations of the Agent: Detailed responsibilities including promotion, sales targets, reporting, and compliance with local laws

8. Rights and Obligations of the Principal: Principal's commitments regarding support, training, and product supply

9. Commission and Payment Terms: Structure of commission, calculation method, payment schedule, and currency

10. Intellectual Property Rights: Usage rights for Principal's trademarks, trade names, and other IP in the Territory

11. Confidentiality: Protection of confidential information exchanged during the agency relationship

12. Registration Requirements: Obligations regarding registration with relevant Saudi authorities

13. Termination: Grounds for termination, notice requirements, and consequences of termination

14. Post-Termination Obligations: Duties of both parties after agreement ends, including return of materials and settlement of accounts

15. Governing Law and Jurisdiction: Specification of Saudi law as governing law and jurisdiction for dispute resolution

16. Force Majeure: Provisions for unforeseeable circumstances preventing performance

17. Notices: Method and addresses for official communications between parties

Optional Sections

1. Non-Competition: Restrictions on Agent's ability to represent competing products/services - include when exclusivity is important

2. Training and Support: Detailed provisions for technical training and support - include for technical products/services

3. Performance Targets: Specific sales or performance targets - include when measuring agent's performance is crucial

4. Marketing and Advertising: Specific requirements for local marketing - include when agent has significant marketing responsibilities

5. Insurance: Requirements for specific insurance coverage - include when dealing with high-value products or services

6. Compliance with Anti-Corruption Laws: Specific anti-corruption provisions - include when dealing with international parties

7. Import/Export Compliance: Provisions regarding import/export regulations - include for international trade

8. Sub-Agents: Terms for appointing sub-agents - include when sub-agents might be needed

9. Bank Guarantee: Requirements for bank guarantees - include for high-value agreements

Suggested Schedules

1. Schedule 1 - Products/Services: Detailed list of products or services covered by the agency agreement

2. Schedule 2 - Commission Structure: Detailed breakdown of commission rates, calculation methods, and examples

3. Schedule 3 - Territory Map: Detailed map and/or description of the territorial boundaries

4. Schedule 4 - Performance Targets: Specific sales targets or KPIs for performance evaluation

5. Schedule 5 - Technical Requirements: Technical specifications or requirements for product handling/service delivery

6. Schedule 6 - Required Registrations: List of required registrations and licenses for the Territory

7. Schedule 7 - Trademark Usage Guidelines: Guidelines for use of Principal's trademarks and branding

8. Appendix A - Standard Operating Procedures: Detailed procedures for day-to-day operations and reporting

9. Appendix B - Contact Details: Key contact persons and their details for both parties

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

Relevant legal definitions















































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Relevant Industries

Manufacturing

Consumer Goods

Technology

Healthcare

Automotive

Construction

Industrial Equipment

Telecommunications

Retail

Pharmaceuticals

Energy

Defense

Agriculture

Professional Services

Financial Services

Relevant Teams

Legal

Commercial

Business Development

Sales

Compliance

Operations

Executive Leadership

Finance

International Trade

Regulatory Affairs

Relevant Roles

Legal Director

Commercial Director

Business Development Manager

Country Manager

Regional Sales Director

Compliance Officer

Contract Manager

Chief Executive Officer

Managing Director

Operations Director

General Counsel

Sales Manager

Distribution Manager

Import/Export Manager

Regulatory Affairs 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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