{"id":8892,"date":"2026-10-12T19:27:30","date_gmt":"2026-10-12T16:27:30","guid":{"rendered":"https:\/\/ususlawfirm.com\/supply-contract-template-saudi-arabia\/"},"modified":"2026-10-12T19:36:20","modified_gmt":"2026-10-12T16:36:20","slug":"supply-contract-template-saudi-arabia","status":"publish","type":"post","link":"https:\/\/ususlawfirm.com\/en\/supply-contract-template-saudi-arabia\/","title":{"rendered":"Supply Contract Template: Clauses That Protect Supplier and Buyer"},"content":{"rendered":"<style>.usus-tbl{border-collapse:collapse;width:100%;max-width:760px;margin:12px 0 20px;font-size:15px}.usus-tbl th{background:#f4eff9;color:#2A124A;font-weight:700;text-align:right;padding:9px 12px;border-bottom:2px solid #C9A227}.usus-tbl td{padding:9px 12px;border-bottom:1px solid #e5ddec;vertical-align:top}<\/style>\n<div dir=\"ltr\" style=\"text-align: left;\">\n<p>Whether you are the supplier or the buyer, the <strong>supply contract<\/strong> decides when goods are delivered, to what specifications, when the price is paid, and what happens on delay or defect. Most commercial disputes we see start with an incomplete supply contract. Here is a <strong>supply contract template<\/strong> ready to copy, and the clauses that protect each side.<\/p>\n<h2>Supply contract template (general form)<\/h2>\n<div class=\"usus-tpl\" id=\"tpl-supply\">\n<strong>Supply Contract<\/strong><br \/>\nThis contract is made on [ \/ \/ ] between:<\/p>\n<p><strong>First Party (Supplier):<\/strong> [company name], CR no. [ ], address [ ], represented by [name and title].<br \/>\n<strong>Second Party (Buyer):<\/strong> [company name], CR no. [ ], address [ ], represented by [name and title].<\/p>\n<p><strong>Clause 1: Subject.<\/strong> The Supplier shall supply [description of goods] according to the attached specifications and schedule of quantities, which form an integral part of this contract.<\/p>\n<p><strong>Clause 2: Quantities and Dates.<\/strong> Supply shall be [in one delivery on &#8230; \/ in instalments under the attached schedule] at [location].<\/p>\n<p><strong>Clause 3: Price and Payment.<\/strong> The contract value is SAR [ ] [including \/ excluding] VAT, payable: [ ]% in advance, [ ]% on delivery, and [ ]% within ( ) days of invoice.<\/p>\n<p><strong>Clause 4: Delivery and Inspection.<\/strong> The Buyer shall inspect the goods within ( ) days of delivery and notify the Supplier in writing of any defect or shortfall, failing which delivery is deemed final, except for hidden defects.<\/p>\n<p><strong>Clause 5: Warranty.<\/strong> The Supplier warrants the goods are sound and conform to the specifications for [ ] from delivery, and shall repair or replace defective goods within ( ) days of notice.<\/p>\n<p><strong>Clause 6: Delay.<\/strong> If the Supplier delivers late, it shall pay a penalty of [ ]% of the late instalment&#8217;s value for each week of delay, up to a maximum of [ ]%, and the Buyer may terminate if the delay exceeds ( ) days.<\/p>\n<p><strong>Clause 7: Late Payment.<\/strong> If the Buyer pays late, the Supplier may suspend further deliveries until payment, without prejudice to its claim.<\/p>\n<p><strong>Clause 8: Force Majeure.<\/strong> Neither party is liable for delay caused by force majeure, provided it notifies the other party in writing within ( ) days of the event.<\/p>\n<p><strong>Clause 9: Governing Law and Disputes.<\/strong> This contract is governed by the laws of the Kingdom of Saudi Arabia; disputes shall be settled amicably within ( ) days, failing which [the competent Commercial Court in &#8230; \/ arbitration under &#8230;].<\/p>\n<p>First Party: [name, signature and stamp]          Second Party: [name, signature and stamp]\n<\/p><\/div>\n<p><button type=\"button\" class=\"usus-copy\" data-t=\"tpl-supply\">Copy the template<\/button><\/p>\n<h2>Clauses that protect each side<\/h2>\n<table class=\"usus-tbl\">\n<thead>\n<tr>\n<th>For the buyer<\/th>\n<th>For the supplier<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Precise, attached specifications<\/td>\n<td>An advance payment<\/td>\n<\/tr>\n<tr>\n<td>A delay penalty and right to terminate<\/td>\n<td>A set inspection period after which delivery is final<\/td>\n<\/tr>\n<tr>\n<td>Warranty and replacement of defects<\/td>\n<td>The right to suspend supply on non-payment<\/td>\n<\/tr>\n<tr>\n<td>The right to reject non-conforming goods<\/td>\n<td>A cap on penalties<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<figure class=\"usus-ig usus-ig-8892-1\"><img class=\"wp-image-8941\" src=\"https:\/\/ususlawfirm.com\/wp-content\/uploads\/2026\/10\/usus-8892-1.webp\" width=\"1200\" height=\"856\" alt=\"Clauses that protect each side \u2014 Supply Contract Template (Usus Law Firm infographic)\" loading=\"lazy\" decoding=\"async\" srcset=\"https:\/\/ususlawfirm.com\/wp-content\/uploads\/2026\/10\/usus-8892-1.webp 1200w, https:\/\/ususlawfirm.com\/wp-content\/uploads\/2026\/10\/usus-8892-1-768x548.webp 768w, https:\/\/ususlawfirm.com\/wp-content\/uploads\/2026\/10\/usus-8892-1-640x457.webp 640w, https:\/\/ususlawfirm.com\/wp-content\/uploads\/2026\/10\/usus-8892-1-400x285.webp 400w, https:\/\/ususlawfirm.com\/wp-content\/uploads\/2026\/10\/usus-8892-1-367x262.webp 367w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><\/figure>\n<p>For other mistakes that cause disputes read <a href=\"https:\/\/ususlawfirm.com\/en\/commercial-contract-mistakes-saudi\/\">mistakes in commercial contracts<\/a>, and to collect a late price read <a href=\"https:\/\/ususlawfirm.com\/en\/debt-collection-saudi-arabia\/\">debt collection<\/a>.<\/p>\n<h2>Frequently asked questions<\/h2>\n<h3>Is a purchase order enough instead of a supply contract?<\/h3>\n<p>A signed purchase order proves the agreement, but it usually lacks delay, warranty and dispute clauses; a contract protects better for repeated or large supplies.<\/p>\n<h3>Which court hears supply disputes between companies?<\/h3>\n<p>Usually the Commercial Court. Read <a href=\"https:\/\/ususlawfirm.com\/en\/saudi-commercial-courts-law\/\">the Commercial Courts Law<\/a>.<\/p>\n<h3>Can a delay penalty be unlimited?<\/h3>\n<p>It is better to set a cap, and the court may review an excessive penalty clause.<\/p>\n<h2>A high-value supply contract?<\/h2>\n<p>The <strong>Usus Law Firm<\/strong> team drafts and reviews supply contracts within <a href=\"https:\/\/ususlawfirm.com\/en\/service\/contract-drafting-and-review\/\">contract drafting<\/a> and handles their disputes within <a href=\"https:\/\/ususlawfirm.com\/en\/service\/commercial-cases\/\">commercial cases<\/a>, in <a href=\"https:\/\/ususlawfirm.com\/en\/lawyer-in-riyadh\/\">Riyadh<\/a> and <a href=\"https:\/\/ususlawfirm.com\/en\/lawyer-in-tabuk\/\">Tabuk<\/a>.<\/p>\n<p style=\"font-size:12.5px;color:#6a6178;border-top:1px solid #e6ddd0;padding-top:10px;margin-top:16px\"><em>This article is general legal information and is not a substitute for advice on your specific case. Court proceedings in Saudi Arabia are in Arabic; the official Arabic text of each law prevails.<\/em><\/p>\n<div class=\"usus-qbox\">\n<h2>Request a quick consultation<\/h2>\n<p>Leave your name and mobile number, and a lawyer from our Riyadh or Tabuk office will call you during working hours. We advise in English.<\/p>\n\n<div class=\"wpcf7 no-js\" id=\"wpcf7-f6963-o1\" lang=\"en-US\" dir=\"ltr\" data-wpcf7-id=\"6963\">\n<div class=\"screen-reader-response\"><p role=\"status\" aria-live=\"polite\" aria-atomic=\"true\"><\/p> <ul><\/ul><\/div>\n<form action=\"\/en\/wp-json\/wp\/v2\/posts\/8892#wpcf7-f6963-o1\" method=\"post\" class=\"wpcf7-form init\" aria-label=\"Contact form\" novalidate=\"novalidate\" data-status=\"init\">\n<fieldset class=\"hidden-fields-container\"><input type=\"hidden\" name=\"_wpcf7\" value=\"6963\" \/><input type=\"hidden\" name=\"_wpcf7_version\" value=\"6.2.2\" \/><input type=\"hidden\" name=\"_wpcf7_locale\" value=\"en_US\" \/><input type=\"hidden\" name=\"_wpcf7_unit_tag\" value=\"wpcf7-f6963-o1\" \/><input type=\"hidden\" name=\"_wpcf7_container_post\" value=\"0\" \/><input type=\"hidden\" name=\"_wpcf7_posted_data_hash\" value=\"\" \/>\n<\/fieldset>\n<span id=\"wpcf7-6ad0fbe47863a-wrapper\" class=\"wpcf7-form-control-wrap cf7apps-honeypot-wrap honeypot-qf-wrap\" style=\"position:absolute;width:1px;height:1px;padding:0;margin:-1px;overflow:hidden;clip:rect(0,0,0,0);white-space:nowrap;border:0;\"><label for=\"wpcf7-6ad0fbe47863a-field\" class=\"hp-message\">Please leave this field empty.<\/label><input id=\"wpcf7-6ad0fbe47863a-field\"  class=\"wpcf7-form-control wpcf7-text\" type=\"text\" name=\"honeypot-qf\" value=\"\" autocomplete=\"new-password\" tabindex=\"1000\" data-cf7apps-tabindex=\"1000\" \/><\/span>\n<div class=\"usus-qf\">\n<div class=\"f\"><label for=\"q-name\">Name<\/label><span class=\"wpcf7-form-control-wrap\" data-name=\"q-name\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-text wpcf7-validates-as-required\" id=\"q-name\" autocomplete=\"name\" aria-required=\"true\" aria-invalid=\"false\" placeholder=\"Your name\" value=\"\" type=\"text\" name=\"q-name\" \/><\/span><\/div>\n<div class=\"f\"><label for=\"q-phone\">Mobile<\/label><span class=\"wpcf7-form-control-wrap\" data-name=\"q-phone\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-tel wpcf7-validates-as-required wpcf7-text wpcf7-validates-as-tel\" id=\"q-phone\" autocomplete=\"tel\" aria-required=\"true\" aria-invalid=\"false\" placeholder=\"05xxxxxxxx\" value=\"\" type=\"tel\" name=\"q-phone\" \/><\/span><\/div>\n<div class=\"f\"><label for=\"q-city\">City<\/label><span class=\"wpcf7-form-control-wrap\" data-name=\"q-city\"><select class=\"wpcf7-form-control wpcf7-select wpcf7-validates-as-required\" id=\"q-city\" aria-required=\"true\" aria-invalid=\"false\" name=\"q-city\"><option value=\"Riyadh\">Riyadh<\/option><option value=\"Tabuk\">Tabuk<\/option><option value=\"Other city\">Other city<\/option><\/select><\/span><\/div>\n<div class=\"f w\"><label for=\"q-msg\">Your case in brief (optional)<\/label><span class=\"wpcf7-form-control-wrap\" data-name=\"q-msg\"><textarea cols=\"40\" rows=\"2\" maxlength=\"600\" class=\"wpcf7-form-control wpcf7-textarea\" id=\"q-msg\" aria-invalid=\"false\" placeholder=\"One or two lines are enough\" name=\"q-msg\"><\/textarea><\/span><\/div>\n<div class=\"s\"><input class=\"wpcf7-form-control wpcf7-submit has-spinner\" type=\"submit\" value=\"Request a call from a lawyer\" \/><\/div>\n<\/div><div class=\"wpcf7-response-output\" aria-hidden=\"true\"><\/div>\n<\/form>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Whether you are the supplier or the buyer, the supply contract decides when goods are delivered, to what specifications, when the price is paid, and what happens on delay or defect. Most commercial disputes we see start with an incomplete supply contract. Here is a supply contract template ready to copy, and the clauses that [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":8967,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[83],"tags":[],"class_list":["post-8892","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-commercial-law"],"acf":[],"featured_image_src":{"landsacpe":["https:\/\/ususlawfirm.com\/wp-content\/uploads\/2026\/10\/usus-cover-8892-1140x445.jpg?wsr",1140,445,true],"list":["https:\/\/ususlawfirm.com\/wp-content\/uploads\/2026\/10\/usus-cover-8892-463x348.jpg?wsr",463,348,true],"medium":["https:\/\/ususlawfirm.com\/wp-content\/uploads\/2026\/10\/usus-cover-8892-300x169.jpg?wsr",300,169,true],"full":["https:\/\/ususlawfirm.com\/wp-content\/uploads\/2026\/10\/usus-cover-8892.jpg?wsr",1200,675,false]},"_links":{"self":[{"href":"https:\/\/ususlawfirm.com\/en\/wp-json\/wp\/v2\/posts\/8892","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ususlawfirm.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ususlawfirm.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ususlawfirm.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ususlawfirm.com\/en\/wp-json\/wp\/v2\/comments?post=8892"}],"version-history":[{"count":1,"href":"https:\/\/ususlawfirm.com\/en\/wp-json\/wp\/v2\/posts\/8892\/revisions"}],"predecessor-version":[{"id":8942,"href":"https:\/\/ususlawfirm.com\/en\/wp-json\/wp\/v2\/posts\/8892\/revisions\/8942"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ususlawfirm.com\/en\/wp-json\/wp\/v2\/media\/8967"}],"wp:attachment":[{"href":"https:\/\/ususlawfirm.com\/en\/wp-json\/wp\/v2\/media?parent=8892"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ususlawfirm.com\/en\/wp-json\/wp\/v2\/categories?post=8892"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ususlawfirm.com\/en\/wp-json\/wp\/v2\/tags?post=8892"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}