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Framework Supply Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Framework Supply Agreement

"I need a Framework Supply Agreement under Saudi law for the supply of industrial equipment from our German manufacturing company to a Saudi government entity, with the agreement starting in March 2025 and including specific provisions for technical support and maintenance services."

Document background
A Framework Supply Agreement is essential for businesses establishing long-term supply relationships in Saudi Arabia. This document type is particularly relevant when parties anticipate multiple supply transactions over time and wish to avoid negotiating terms for each individual order. The agreement must comply with Saudi law, including Sharia principles and commercial regulations, while providing flexibility for future supply arrangements. It typically includes detailed provisions for ordering procedures, pricing mechanisms, quality standards, delivery terms, and dispute resolution. The framework nature allows parties to execute subsequent purchase orders efficiently while maintaining consistent terms and conditions. This document is commonly used in various sectors from manufacturing to services, and can be adapted for both domestic and international supply relationships, taking into account Saudi Arabia's foreign investment and import regulations.
Suggested Sections

1. Parties: Identification of the supplier and buyer entities, including full legal names, commercial registration details, and addresses

2. Background: Context of the agreement, relationship between parties, and general purpose of the framework arrangement

3. Definitions: Detailed definitions of key terms used throughout the agreement, including technical and commercial terms

4. Scope of Agreement: Overview of the framework arrangement, products/services covered, and exclusivity provisions if any

5. Ordering Process: Procedures for placing and accepting orders, including minimum order quantities and lead times

6. Pricing and Payment: Price determination mechanisms, payment terms, invoicing requirements, and currency provisions

7. Delivery and Acceptance: Terms for delivery, inspection, acceptance procedures, and transfer of risk and title

8. Quality Requirements: Quality standards, specifications, and compliance with Saudi technical regulations

9. Warranties: Product warranties, quality guarantees, and compliance with Saudi standards and regulations

10. Term and Termination: Duration of the agreement, renewal provisions, and termination rights

11. Liability and Indemnification: Allocation of risks, limitation of liability, and indemnification obligations

12. Confidentiality: Protection of confidential information and trade secrets

13. Force Majeure: Events excusing performance, including notification requirements and consequences

14. Governing Law and Dispute Resolution: Saudi law as governing law and dispute resolution mechanisms

15. General Provisions: Standard boilerplate clauses including notices, amendments, and entire agreement

Optional Sections

1. Compliance with Islamic Principles: Specific provisions ensuring compliance with Sharia law principles, required when explicitly requested or when dealing with Islamic financial institutions

2. Intellectual Property Rights: IP ownership and licensing terms, needed when supply involves branded products or technical information

3. Insurance Requirements: Specific insurance obligations, recommended for high-value or high-risk supply arrangements

4. Performance Metrics: KPIs and performance measurement criteria, useful for complex supply arrangements

5. Training and Support: Terms for technical support and training, relevant when supply involves complex products or systems

6. Customs and Import Requirements: Specific provisions for international supply arrangements, needed when imports are involved

7. Localization Requirements: Provisions addressing Saudi Arabia's localization requirements, necessary when relevant to the industry

8. Anti-corruption Compliance: Detailed compliance provisions, particularly important when dealing with government entities or international parties

Suggested Schedules

1. Product Specifications: Detailed technical specifications of products to be supplied

2. Pricing Schedule: Detailed pricing structure, including any volume discounts or pricing mechanisms

3. Service Levels: Specific service level requirements and performance metrics

4. Quality Standards: Detailed quality requirements and testing procedures

5. Approved Locations: List of approved delivery locations and associated requirements

6. Key Personnel: Details of key contacts and responsible personnel from both parties

7. Form of Purchase Order: Standard template for purchase orders under the framework

8. Compliance Requirements: Detailed regulatory and compliance requirements specific to the products/services

9. Technical Support Requirements: Detailed requirements for any technical support or maintenance services

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

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Relevant Industries

Manufacturing

Oil & Gas

Construction

Healthcare

Retail

Technology

Automotive

Food & Beverage

Industrial Equipment

Chemicals

Telecommunications

Defense

Pharmaceuticals

Energy

Relevant Teams

Legal

Procurement

Supply Chain

Operations

Commercial

Finance

Compliance

Quality Assurance

Risk Management

Logistics

Business Development

Relevant Roles

Procurement Manager

Supply Chain Director

Commercial Director

Legal Counsel

Contracts Manager

Operations Manager

Chief Operating Officer

Purchasing Officer

Compliance Officer

General Manager

Business Development Manager

Logistics Manager

Quality Assurance Manager

Risk Manager

Chief Financial Officer

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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