Supply Agreement Template: From Purchase Order to Inspection and Warranty, Certified by a Licensed Saudi Lawyer

What this contract is and when you need it

A supply agreement is the umbrella under which purchase orders operate. You do not sign a new contract for every shipment; you sign the agreement once, then the buyer issues orders and the supplier confirms them within a set window. The agreement fixes the ordering terms, the delivery point, the conformity standards, the warranty, and payment, so the order itself stays a short sheet of quantities and dates. Every business that buys materials or products on a repeat basis needs it, and so does every supplier who wants prices locked and protection against a shipment being rejected weeks after it was delivered.

• A factory or retailer buying raw materials or stock from a standing supplier through successive orders.
• A supplier wanting prices held for the term and a defined inspection window and liability limit.
• Supply performed inside a contracting chain with a government body or state-owned company, where local content rules apply.
• The need for a clear regime on delay and hidden defects instead of leaving both to a verbal understanding.

What the smart-fill asks and what you receive

The smart-fill starts with the parties: the buyer's name in Arabic and English with its commercial registration number, and the supplier's name in Arabic and English with its commercial registration number. It then moves to the ordering cycle, asking for the window in which the supplier confirms or rejects a purchase order, and then a decisive question that is usually forgotten: an order not confirmed within that window, is it deemed accepted or rejected? Both answers are legitimate, but staying silent on the point is what opens the dispute.

It then asks about delivery and title: are the goods delivered to the buyer's warehouse, in which case you enter the warehouse address in Arabic and English, or ex the supplier's premises? And does title pass on delivery, or upon full payment of the relevant invoice? Next comes inspection and quality: the window for notifying apparent defects or shortages on receipt, the window for notifying hidden defects, the period within which the supplier replaces, repairs, or refunds rejected goods, and the warranty period covering the goods' fitness for the stated purpose and freedom from third-party rights.

Then the financial and timing side: are the prices in the schedule firm for the term or adjustable by written agreement, the description of the supply and delivery consideration in Arabic and English, and the payment period after an invoice that meets the Zakat, Tax and Customs Authority requirements and references the purchase order. It asks about delay compensation too: the weekly rate applied to the value of the late order, in Arabic and English, and the cap in weeks, along with the liability cap tied to the aggregate paid over the preceding twelve months, the termination for convenience notice, the cure period for material breach, and the dispute forum between the competent commercial court and arbitration at the Saudi Center for Commercial Arbitration.

And one switch reshapes the contract: is the supply performed inside a contracting chain with a government body or state-owned company? Answer yes and the local content and Mandatory List clause is inserted, the clause numbering adjusts automatically, and four further questions open up: the notice period when a product is added to the Mandatory List mid-contract, the good-faith renegotiation window after that notice, the retention period for local content records in years, and the notice given before those records are audited. You then receive, within minutes, a formatted bilingual Word document, ready to sign and editable before approval.

Why a lawyer-certified template beats a free download

Free supply contracts are usually written from one side's angle and translated out of a foreign context, so they reach you with delivery terms that do not apply and complete silence on passing of title and the inspection window. When the problem arises, and in practice it is a shipment that came short or late or showed a defect a month later, nobody finds a clause in the contract that settles it. More seriously, a free form knows nothing about local content rules, so a supplier contracts inside a government chain under an agreement that carries neither its obligations nor its record-keeping. The Sighaty template is certified by a licensed Saudi lawyer and written for exactly these situations, and it is updated as Saudi regulations change, so you get a contract that answers when asked instead of a generic form that goes quiet at the first test.

Frequently asked questions