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Contract Acceptance Letter Template for Saudi Arabia

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Key Requirements PROMPT example:

Contract Acceptance Letter

"I need a Contract Acceptance Letter for a Saudi construction project worth 5 million SAR, to be issued by March 2025, that includes specific references to our board approval and Sharia compliance certification."

Document background
The Contract Acceptance Letter is a critical document in Saudi Arabian business transactions, used when an entity wishes to formally accept the terms and conditions of a contract offer. It serves as documentary evidence of contract formation under Saudi commercial law and must comply with both civil law requirements and Sharia principles. The document is typically used following receipt and review of a formal contract offer, requiring careful consideration of the underlying agreement's terms, proper authorization from the accepting entity, and compliance with local legal formalities. The Contract Acceptance Letter should include clear reference to the original offer, explicit acceptance language, and proper execution by authorized representatives. It is particularly important in Saudi Arabia where formal documentation and proper authorization are essential elements of valid commercial transactions.
Suggested Sections

1. Letter Header: Formal business letter header including date, reference number, and proper addressing to the offering party

2. Contract Reference: Clear identification of the contract being accepted, including its title, reference number, and date

3. Confirmation of Receipt: Acknowledgment of receiving the original contract and all its associated documents

4. Declaration of Acceptance: Express and unequivocal statement of acceptance of the contract terms

5. Authorization Statement: Confirmation of the signatory's authority to accept the contract on behalf of the accepting entity

6. Closing and Signature: Formal closing, signature block with name, title, and company stamp as required under Saudi law

Optional Sections

1. Key Terms Summary: Brief recap of key terms being accepted - used when the underlying contract is complex or high-value

2. Conditions Precedent: Any conditions that must be fulfilled before the acceptance becomes effective - included if there are pending requirements

3. Implementation Timeline: Proposed timeline for contract implementation - used when immediate action is required post-acceptance

4. Point of Contact: Designation of primary contact person for contract implementation - included for complex contracts requiring ongoing coordination

5. Sharia Compliance Statement: Explicit confirmation of Sharia compliance - included when dealing with financial or investment contracts

Suggested Schedules

1. Power of Attorney: Copy of authorization document proving signatory's authority - required if signatory is not a registered officer

2. Commercial Registration: Copy of current commercial registration certificate of the accepting entity

3. Board Resolution: Copy of board resolution authorizing acceptance (if required by company's constitution)

4. Specimen Signature: Authenticated specimen signature of the authorized signatory as may be required by Saudi law

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


















Clauses















Relevant Industries

Oil & Gas

Construction

Financial Services

Manufacturing

Technology

Healthcare

Transportation & Logistics

Real Estate

Professional Services

Retail & Consumer Goods

Education

Telecommunications

Government & Public Sector

Defense & Security

Relevant Teams

Legal

Procurement

Contracts Administration

Commercial Operations

Risk & Compliance

Corporate Secretariat

Business Development

Finance

Operations

Executive Leadership

Relevant Roles

Chief Executive Officer

Managing Director

Legal Counsel

Contract Manager

Procurement Manager

Commercial Director

Business Development Manager

Operations Director

Chief Financial Officer

Company Secretary

Compliance Officer

Project Manager

Risk Manager

General Manager

Department Head

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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