Agreement Between Two Parties template

Agreement Between Two Parties Template Compliant with the Regulations of the Kingdom of Saudi Arabia

Praise be to God alone, and peace and blessings be upon the one after whom there is no prophet. To proceed: On (day) ________, corresponding to / / AH, corresponding to / / AD, in the city of ________, with the help of God Almighty, an agreement was made between:

1. First Party: Mr/Ms ____________ (or establishment/company ____________, Commercial Registration No. ________), Nationality: ________, National ID/Iqama No.: ____________, National Address: ____________, Mobile: ________, Email: ________.
2. Second Party: Mr/Ms ____________ (or establishment/company ____________, Commercial Registration No. ________), Nationality: ________, National ID/Iqama No.: ____________, National Address: ____________, Mobile: ________, Email: ________.

The parties acknowledge their legal capacity under Sharia and the law to contract, and of their own free will have agreed as follows: Clause One: Subject of the agreement The Second Party undertakes to carry out the following for the First Party, specifically: ................................................................................................ ................................................................................................ (Describe the subject precisely: exactly what is required, where it is to be carried out, the specifications or quantities, and what the agreement does not cover. Vagueness here causes most disputes.) Clause Two: Term and delivery

• Performance begins on / / AH and ends on / / AH, or within (________) days of the date of signing.
• Place of performance/delivery: ____________________.
• On delivery, a report signed by both parties shall be drawn up recording what was delivered and its condition.

Clause Three: Consideration and method of payment

• Total consideration: (____________) Saudi riyals only.
• (Inclusive / exclusive of) value added tax. If the party entitled to payment is an establishment registered for VAT, it shall issue a compliant tax invoice.
• Payment schedule: an advance payment of (____%) on signing, (____%) upon ____________, and the balance on final delivery and acceptance.
• Amounts shall be paid by bank transfer to IBAN: SA..............................; cash payment is not recognised without a signed receipt.

Clause Four: Obligations of the parties

1. The First Party shall:
   • Provide the Second Party with what is needed to perform the agreement (documents, site access, data, permits).
   • Pay the amounts due on time.
   • Raise any comments within (________) days of delivery, failing which the work shall be deemed accepted.
2. The Second Party shall:
   • Perform as agreed and to the usual professional standard.
   • Not subcontract the performance, in whole or in part, to others without prior written consent.
   • Bear responsibility for those it engages, and for the safety of its tools and equipment.

Clause Five: Changes to the scope of work Any additional work outside Clause One shall be carried out only under a written agreement specifying its description, its consideration and its effect on the term. Neither party is bound to carry out additional work it has not agreed to in writing. Clause Six: Delay In the event of a delay beyond the deadline without an acceptable excuse, the affected party is entitled to compensation of (________) Saudi riyals for each day of delay, not exceeding (____%) of the value of the agreement. Delay attributable to the other party or to circumstances beyond the parties' control shall not be counted. Clause Seven: Termination and rescission

• Either party may terminate the agreement if the other party commits a material breach, after giving it written notice and a period of (________) days to remedy the breach.
• On termination, amounts due shall be settled on the basis of what has actually been performed, and the completed work and any documents or property belonging to the other party held by each party shall be handed over.

Clause Eight: Confidentiality The parties shall not disclose any information they obtain in connection with this agreement, and these obligations shall continue after it ends for a period of (________). Clause Nine: Jurisdiction and general provisions

• This agreement and its interpretation are governed by the laws of the Kingdom of Saudi Arabia, in particular the Civil Transactions Law.
• Disputes shall be settled amicably; failing that, they shall fall within the jurisdiction of the competent judicial authorities in the Kingdom.
• The National Address, mobile number and email stated above are each party's chosen address for service.
• Any party's forbearance in claiming a right shall not be deemed a waiver of it.
• If any clause of this agreement is held invalid, the remaining clauses shall remain in force.
• Executed in two signed copies, each party holding one copy to act upon.

Signatures: First Party: Name: ________________ Signature: ________ Date: / / AH Second Party: Name: ________________ Signature: ________ Date: / / AH

When is this template not suitable?

Some agreements are governed by specific statutory provisions or procedures, and a general agreement is not enough for them. Use the dedicated template:

• Leasing property — registered through the Ejar platform: Residential lease · Commercial shop lease · Furnished apartment
• Construction and finishing work — Construction contract · Finishing contract
• Sale of property — ownership passes only on transfer of the title deed (ifragh) via Najiz: Property sale contract
• Sale of a vehicle — ownership passes only through the sale transaction on Absher: Car sale contract
• Franchise — disclosure and registration with the Ministry of Commerce are required: Franchise guide
• Employment relationship — governed by the Labour Law and the prescribed documentation procedures; a general agreement is not suitable for it.