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Material Supply Agreement
"I need a Material Supply Agreement for my Saudi manufacturing company to purchase industrial chemicals from a local supplier, with strict quality control requirements and SASO compliance, starting from March 2025."
1. Parties: Identification of the supplier and buyer, including full legal names, commercial registration numbers, and addresses
2. Background: Recitals explaining the context and purpose of the agreement
3. Definitions and Interpretation: Definitions of key terms and interpretation rules
4. Supply Obligations: Core obligations of the supplier regarding material supply, including quantity, quality, and specifications
5. Ordering Process: Procedures for placing and accepting orders, including lead times and minimum order quantities
6. Pricing and Payment: Price structure, payment terms, invoicing requirements, and VAT considerations
7. Delivery and Risk: Delivery terms, transfer of risk, and acceptance procedures
8. Quality Assurance: Quality standards, testing procedures, and compliance with SASO requirements
9. Warranties: Supplier warranties regarding materials and compliance with specifications
10. Term and Termination: Duration of agreement and termination rights
11. Liability and Indemnification: Allocation of risks and responsibilities between parties
12. Force Majeure: Events excusing performance and related procedures
13. Confidentiality: Protection of confidential information and trade secrets
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
1. Customs and Import Duties: Required if materials are being imported, covering responsibility for customs clearance and duties
2. Storage and Handling Requirements: Include if materials require specific storage conditions or handling procedures
3. Exclusivity Arrangements: Include if supplier is granted exclusive rights or buyer commits to exclusive purchase
4. Insurance Requirements: Detailed insurance obligations if specific coverage is required beyond standard requirements
5. Environmental Compliance: Include if materials have environmental implications or require special disposal
6. Technology License: Required if supply includes associated technology or intellectual property rights
7. Training and Support: Include if supplier must provide training on material handling or technical support
8. Security Requirements: Include for sensitive or controlled materials requiring specific security measures
1. Schedule 1 - Material Specifications: Detailed technical specifications of materials to be supplied
2. Schedule 2 - Pricing Schedule: Detailed pricing information, including any volume discounts or price adjustment mechanisms
3. Schedule 3 - Delivery Locations: List of approved delivery locations and any specific delivery requirements
4. Schedule 4 - Quality Standards and Testing Procedures: Detailed quality requirements and testing protocols
5. Schedule 5 - Key Performance Indicators: Performance metrics and measurement criteria
6. Schedule 6 - Form of Purchase Order: Standard form for placing orders under the agreement
7. Schedule 7 - HSSE Requirements: Health, Safety, Security and Environmental requirements if applicable
8. Schedule 8 - Contact Details: Key contact persons and their details for both parties
Authors
Manufacturing
Construction
Oil & Gas
Mining
Petrochemicals
Industrial Equipment
Automotive
Infrastructure
Healthcare
Electronics
Building Materials
Textiles
Food & Beverage
Pharmaceuticals
Procurement
Supply Chain
Legal
Operations
Commercial
Quality Control
Logistics
Finance
Compliance
Technical
Warehouse
Business Development
Procurement Manager
Supply Chain Director
Commercial Manager
Contracts Manager
Operations Manager
Quality Control Manager
Legal Counsel
Chief Operations Officer
Purchasing Officer
Logistics Manager
Compliance Officer
Materials Manager
Business Development Manager
Technical Manager
Finance Manager
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