Document background
The Contract Agreement For Supply of Goods is a fundamental commercial document used to establish and regulate the supply relationship between parties operating in or with Saudi Arabia. This agreement is particularly important in the Saudi market where commercial relationships must align with both modern business practices and Islamic Shariah principles. The document is typically used when establishing ongoing supply arrangements, whether for regular delivery of goods or framework agreements for future orders. It addresses key aspects including payment terms (structured to comply with Islamic finance principles), quality control measures, delivery requirements, and dispute resolution mechanisms specific to Saudi jurisdiction. The agreement serves as a comprehensive framework that protects both suppliers' and buyers' interests while ensuring compliance with Saudi Commercial Law, VAT regulations, and other relevant local legislation.
