Document background
The Business Sales Agreement is a fundamental commercial contract used in Saudi Arabia for business-to-business transactions involving the sale of goods or products. It serves as a comprehensive framework for establishing the rights, obligations, and responsibilities of both the seller and buyer, ensuring compliance with Saudi commercial laws and Sharia principles. This document is essential for companies engaging in significant B2B transactions within Saudi Arabia, particularly when dealing with regular supply arrangements, bulk purchases, or ongoing business relationships. The agreement needs to address specific Saudi regulatory requirements, including commercial registration details, VAT considerations (currently at 15%), and appropriate dispute resolution mechanisms referencing Saudi commercial courts. It's particularly important for businesses establishing long-term supply relationships or engaging in high-value transactions where detailed terms and conditions need to be clearly documented.
