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Sole Supply Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Sole Supply Agreement

"I need a Sole Supply Agreement for my pharmaceutical manufacturing company to be the exclusive supplier of medical grade materials to a major hospital chain in Saudi Arabia, with the agreement starting from March 2025 and including strict quality control measures and SFDA compliance requirements."

Document background
The Sole Supply Agreement is a crucial commercial contract used when establishing an exclusive supply relationship in Saudi Arabia. It is particularly relevant when a business wants to secure a reliable, exclusive source of products or services, or when a supplier seeks to establish a committed commercial relationship with a buyer. The agreement must comply with Saudi Arabian law, including Sharia principles and competition regulations, while addressing commercial requirements such as supply obligations, pricing, quality standards, and minimum purchase commitments. This document type is commonly used across various industries and is especially important in sectors where consistent supply quality and reliability are essential. The agreement includes comprehensive provisions for performance monitoring, dispute resolution, and termination rights, all structured to align with Saudi legal requirements and business practices.
Suggested Sections

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

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

3. Definitions and Interpretation: Definitions of key terms and interpretation rules, including Sharia compliance statement

4. Appointment and Scope: Terms of exclusive appointment and territorial scope of the supply arrangement

5. Supply Obligations: Supplier's obligations regarding product supply, quality, quantity, and delivery terms

6. Purchase Obligations: Buyer's obligations including minimum purchase commitments and forecasting requirements

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

8. Quality and Compliance: Product specifications, quality standards, and compliance with Saudi regulations

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

10. Intellectual Property: Rights and restrictions regarding use of trademarks, patents, and other IP

11. Confidentiality: Protection of confidential information and trade secrets

12. Force Majeure: Events excusing performance, including definition and procedures

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

14. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment

Optional Sections

1. Import/Export Requirements: Required if products are being imported/exported, detailing customs and regulatory compliance

2. Storage and Warehousing: Include if supplier requires specific storage conditions or maintains local inventory

3. Marketing and Promotion: Needed if parties share marketing responsibilities or restrictions

4. Training and Support: Include if supplier provides technical training or ongoing support

5. Insurance Requirements: Detailed insurance obligations beyond standard requirements

6. Product Development: Include if parties collaborate on product modifications for local market

7. Audit Rights: Required for agreements with complex pricing or royalty structures

8. Data Protection: Include if personal data processing is involved in the supply relationship

Suggested Schedules

1. Schedule 1 - Products: Detailed list of products covered by the agreement, including specifications

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

3. Schedule 3 - Quality Standards: Detailed quality requirements and testing procedures

4. Schedule 4 - Service Levels: Performance metrics and service level requirements

5. Schedule 5 - Territory: Detailed description of geographical territory covered

6. Schedule 6 - Minimum Purchase Commitments: Detailed breakdown of purchase obligations by period

7. Appendix A - Technical Specifications: Detailed technical requirements and product specifications

8. Appendix B - Compliance Requirements: Specific Saudi regulatory requirements and compliance procedures

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

Education

Retail

Industrial

Technology

Food and Beverage

Automotive

Construction

Energy

Telecommunications

Pharmaceutical

Relevant Teams

Legal

Procurement

Supply Chain

Commercial

Operations

Business Development

Vendor Management

Compliance

Finance

Risk Management

Relevant Roles

Procurement Manager

Supply Chain Director

Commercial Director

Legal Counsel

Contract Manager

Business Development Manager

Operations Director

Chief Operating Officer

Purchasing Manager

Vendor Relations Manager

Commercial Manager

General Counsel

Chief Legal Officer

Sourcing 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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