Supply, distribution and agency agreements
Introduction
The agreements that take goods and services to market: supply terms, distribution networks and commercial agencies.
Supply and distribution agreements carry most of a trading company's risk: price, quality, delivery, exclusivity, liability and termination. Since the Civil Transactions Law came into force in December 2023, these agreements are read against codified rules on formation, interpretation, compensation and time limits, so older templates often need updating.
Commercial agency and distribution relationships with foreign principals have their own rules in the Kingdom, including registration with the Ministry of Commerce, and exclusivity and resale terms must also respect the Competition Law. We structure these relationships so the principal keeps control of its brand and the distributor has the certainty it needs to invest.
We draft and negotiate for suppliers, buyers, principals and distributors, in Arabic and English, and we advise when relationships end: notice, compensation claims, stock and the transfer of the network to a new distributor.
How we help
What the work covers
Supply terms
Price, quality, delivery, warranties and limits on liability.
Distribution
Territory, exclusivity, targets and resale terms within the competition rules.
Agency registration
Registering commercial agency and distribution agreements with the Ministry of Commerce.
Termination
Notice, compensation, stock and handover when the relationship ends.
Contact