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Preferred Vendor Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Preferred Vendor Agreement

"I need a Preferred Vendor Agreement under Saudi law for a technology services provider who will be our exclusive supplier of cloud computing services starting March 2025, with specific provisions for data security and service level commitments."

Document background
This Preferred Vendor Agreement is designed for use in commercial relationships within Saudi Arabia where a company wishes to establish a long-term, preferential procurement arrangement with a key supplier. The document incorporates essential elements required under Saudi law, including Sharia compliance provisions and local commercial regulations. It is particularly suitable for situations requiring regular procurement of goods or services, where the buyer seeks to secure favorable terms, guaranteed supply, and potentially exclusive arrangements. The agreement typically includes comprehensive terms covering pricing, service levels, quality standards, and performance metrics, while addressing specific Saudi Arabian regulatory requirements such as commercial agency laws and foreign investment regulations where applicable.
Suggested Sections

1. Parties: Identification of the parties, including full legal names, commercial registration numbers, and authorized representatives

2. Background: Context of the agreement, relationship overview, and confirmation of parties' capacity to contract

3. Definitions: Key terms used throughout the agreement, including specific Saudi legal and commercial terms

4. Appointment and Scope: Terms of vendor appointment, preferred status details, and scope of products/services

5. Term and Renewal: Duration of the agreement and renewal mechanisms

6. Ordering Process: Procedures for placing and accepting orders, including electronic communications

7. Pricing and Payment Terms: Price determination, payment schedules, and currency specifications

8. Delivery and Performance: Requirements for delivery of goods/services, performance standards, and KPIs

9. Quality Standards: Required quality levels, compliance with Saudi standards and regulations

10. Warranties and Representations: Parties' warranties, including Sharia compliance declarations

11. Confidentiality: Protection of confidential information and trade secrets

12. Termination: Grounds and procedures for termination, including notice requirements

13. Governing Law and Jurisdiction: Confirmation of Saudi law governance and dispute resolution mechanisms

14. General Provisions: Standard clauses including notices, amendments, and entire agreement provisions

Optional Sections

1. Exclusivity Terms: Used when the agreement includes exclusive purchasing commitments or territory restrictions

2. Volume Commitments: Include when there are minimum purchase obligations or forecasting requirements

3. Technology License: Required when the vendor provides proprietary technology or software

4. Data Protection: Include when personal data processing is involved in the vendor relationship

5. Insurance Requirements: Used for high-risk products or services requiring specific insurance coverage

6. Import/Export Compliance: Include for international vendors or cross-border transactions

7. Force Majeure: Optional but recommended for long-term agreements, defining circumstances beyond parties' control

8. Training and Support: Include when vendor must provide training or ongoing technical support

9. Shariah Compliance Certificate: Required for financial services or when specifically requested by parties

Suggested Schedules

1. Schedule 1 - Products/Services Description: Detailed list and specifications of products or services covered

2. Schedule 2 - Pricing Schedule: Detailed pricing structure, discounts, and payment terms

3. Schedule 3 - Service Levels: Specific performance metrics, KPIs, and measurement criteria

4. Schedule 4 - Technical Requirements: Technical specifications and compliance requirements

5. Schedule 5 - Key Personnel: List of key contacts and authorized representatives from both parties

6. Appendix A - Order Form Template: Standard form for placing orders under the agreement

7. Appendix B - Quality Control Procedures: Detailed quality assurance and control processes

8. Appendix C - Compliance Certificates: Copies of required regulatory and compliance certificates

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












































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Relevant Industries

Manufacturing

Healthcare

Construction

Technology

Retail

Energy

Telecommunications

Financial Services

Automotive

Food and Beverage

Pharmaceuticals

Industrial Equipment

Consumer Goods

Logistics

Education

Relevant Teams

Procurement

Legal

Supply Chain

Finance

Operations

Compliance

Risk Management

Commercial

Vendor Management

Contracts Administration

Strategic Sourcing

Relevant Roles

Procurement Manager

Supply Chain Director

Commercial Director

Legal Counsel

Contracts Manager

Vendor Relations Manager

Chief Financial Officer

Operations Director

Compliance Officer

Risk Manager

Category Manager

Sourcing Specialist

Business Development Manager

Finance Manager

General Counsel

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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