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Month To Month Contract for Saudi Arabia

Month To Month Contract Template for Saudi Arabia

This document is a month-to-month contract template designed for use in Saudi Arabia, structured to comply with Saudi Labor Law, implementing regulations, and Sharia principles. It provides a flexible framework for recurring contractual relationships while incorporating essential provisions for termination, renewal, and dispute resolution under Saudi jurisdiction. The contract includes mandatory provisions for payment terms, service scope, and notice periods, all aligned with local legal requirements and business practices in the Kingdom of Saudi Arabia.

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What is a Month To Month Contract?

This Month To Month Contract template is specifically designed for use in Saudi Arabia where parties require a flexible, ongoing contractual arrangement that can be terminated or modified with appropriate notice. It is particularly useful for service providers, consultants, and businesses seeking to establish recurring business relationships while maintaining the ability to adjust terms or end the arrangement with minimal complexity. The document incorporates all necessary elements required under Saudi Labor Law and Sharia principles, including clear payment terms, service specifications, and termination rights. This contract type is commonly used for professional services, consulting arrangements, and recurring supply relationships where parties prefer not to commit to long-term fixed arrangements but require a formal legal framework for their ongoing business relationship.

What sections should be included in a Month To Month Contract?

1. Parties: Identification and details of the contracting parties

2. Background: Context of the agreement and relationship between the parties

3. Definitions: Key terms used throughout the agreement

4. Term and Renewal: Duration of initial term and automatic renewal provisions

5. Services/Scope: Detailed description of services or scope of work to be provided

6. Payment Terms: Monthly fees, payment schedule, and payment methods

7. Termination: Notice periods and procedures for termination by either party

8. Obligations: Key responsibilities and obligations of each party

9. Confidentiality: Protection of confidential information exchanged during the contract period

10. Governing Law: Confirmation of Saudi law application and Sharia compliance

11. Dispute Resolution: Process for resolving disputes under Saudi jurisdiction

What sections are optional to include in a Month To Month Contract?

1. Force Majeure: Terms dealing with unforeseen circumstances - include for higher-value contracts

2. Insurance: Insurance requirements - include when services involve physical presence or risk

3. Intellectual Property: IP ownership and usage rights - include when creative or technical work is involved

4. Non-Competition: Competitive restrictions - include for sensitive business relationships

5. Assignment: Rights to transfer obligations - include for complex business relationships

6. Warranties: Specific guarantees - include when quality assurance is critical

7. Compliance with Laws: Specific regulatory compliance - include for regulated industries

What schedules should be included in a Month To Month Contract?

1. Schedule 1 - Service Specifications: Detailed description of services or deliverables

2. Schedule 2 - Fee Schedule: Breakdown of fees and payment structure

3. Schedule 3 - Key Personnel: List of key contacts and responsible personnel from both parties

4. Appendix A - Notice Requirements: Specific notice requirements and contact details for formal communications

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

Jurisdiction

Saudi Arabia

Publisher

Ƶ

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions

























Clauses

























Relevant Industries

Professional Services

IT and Technology

Consulting

Real Estate

Facilities Management

Construction

Marketing and Advertising

Healthcare

Education

Retail

Manufacturing

Logistics

Financial Services

Relevant Teams

Legal

Procurement

Operations

Human Resources

Finance

Commercial

Business Development

Contract Administration

Supply Chain

Project Management

Risk Management

Relevant Roles

Legal Counsel

Contract Manager

Procurement Manager

Business Development Manager

Operations Manager

Project Manager

HR Manager

Finance Manager

Commercial Director

General Manager

Consultant

Service Provider

Account Manager

Supply Chain 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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