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Material Supply Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

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."

Document background
The Material Supply Agreement is a critical commercial contract used when a business needs to establish a formal, ongoing arrangement for the supply of materials in Saudi Arabia. It is particularly important in industries requiring regular material procurement under consistent terms. The agreement must comply with Saudi Arabian law, including Islamic Shariah principles and commercial regulations, while addressing practical aspects such as ordering processes, quality standards, delivery terms, and price mechanisms. This document is essential for businesses operating in Saudi Arabia that need to secure their supply chain, ensure consistent material quality, and maintain regulatory compliance while managing commercial risks effectively.
Suggested Sections

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

Optional Sections

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

Suggested Schedules

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

Alex Denne

Head of Growth (Open Source Law) @ 黑料视频 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions












































Clauses







































Relevant Industries

Manufacturing

Construction

Oil & Gas

Mining

Petrochemicals

Industrial Equipment

Automotive

Infrastructure

Healthcare

Electronics

Building Materials

Textiles

Food & Beverage

Pharmaceuticals

Relevant Teams

Procurement

Supply Chain

Legal

Operations

Commercial

Quality Control

Logistics

Finance

Compliance

Technical

Warehouse

Business Development

Relevant Roles

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

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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