A unified form Of a commercial proxy

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A unified form

Of a commercial proxy

For a foreign or national project

On this day —————– corresponding to / / in ———- City

It was agreed between

1- —————————————– His residence (or his headquarter):——-

Holder of Commercial Register no. —— dated ————- City:———

Represented in this contract by Mr. —————————————–

His nationality: ————————– , First Party

2- ————————————– His residence/headquarter: —————

Holder of Commercial Register nr. —– dated ———– City: ————

Represented in this contract by Mr. ——————

Second Party:——————————


Based on both parties desire to form a business between them to serve their mutual interests and determining the rights and obligation of each party towards the other.

Whereas the first party has products or services that he wishes to promote/ through a commercial proxy/agent

And based on the desire of the second party to function as the commercial proxy on behalf of the first party to negotiate and spur others to conclude deals and executing them in return of fees or commission , the two parties have agreed to the following:

Item (1) : The previous prelude is considered part and parcel of this contract.

Item (2): The two parties agreed that the second party, in his capacity as a commercial proxy, shall urge and negotiate to conclude and execute deals regarding products or services subject of this contract in the name of ———————— and for the benefit of ——————-.

Item (3): The subject of this proxy are products or services provided by the first party and listed as follows:

The types of products or services covered by the proxy contract are as follows:

Item (4): The scope of the validity of this contract is determined by:

(It should be declared whether it is general for the Kingdom of Saudi Arabia or is exclusive to a particular area in the Kingdom of Saudi Arabia)

Item (5): The validity of this contract is ———-years, starting on —————————- and ending on: renewable to similar periods unless either one of the two parties notify the other party in writing by virtue of a registered letter of his desire not to renew the agreement, at least three months, before the expiration date of the original period or the renewed period.

Item (6): The two parties execute the contract according to its rules and in conformity with the rules of commercial traditions and in a manner that conforms to the requirements of good intent. This obligation includes what

is considered of the contract requirements according to commercial transaction.

Item (7): The first party guarantees the good quality of all materials and products subject of the contract, also he is obliged to provide the maintenance and spare parts at reasonable prices when it is requested by the second party according to the quantities and times established by the second party during the proxy’s period and for a subsequent one year starting from the expiration date of the proxy’s period or to the date of appointing another distributor which comes first.

Item (8): The first party guarantees the good quality of products and materials subject of contract and its conformity with standard specifications approved in the Kingdom, the agent is not responsible for receiving or distributing any quantity coming from the first party in violation of required standard specifications, if it was proofed to relevant parties the existence of violations to specification, the goods shall be returned to the first party at his own expenses in addition to the second party’s right to claim suitable compensation for the damages befall him.

Item (9): The second party is committed to the following:

a- Providing the space/site at which proxy activities are practiced and to carry out work by his own staff paying attention of an interested man. In case of soliciting the services and technical expertise from the first party, the two parties agree on that including the cost on case by case basis.

b- Performing al works needed for executing the contract such as introducing the goods, promoting it and finding suitable places for storing them if the need arises for that and providing local services within the determined geographical scope.

c- To provide an account on his proxy

Item (10): The second party deserves from the first party commission in the amount of ———– of the value of items sold in the contract’s area.

Item (11): the first party is committed to the following:

a) To return back the money spent by the second party in the course of executing the contract according to agreement.

b) Providing the second party with advertising materials and organizing the activity of installment sale.

Item (12): The commercial agent has the right to claim compensation for damages befallen him according to the contract or commercial traditions in the following cases:

a) If the first party withdrew the proxy in an unsuitable time or because of a reason that has nothing to do with the agent.

b) If the first party refuses to renew the period of the proxy after the expiration of the original period. Despite of any incompatible agreement. Should the agent proof that his activity has lead to an apparent success in promoting first party’s production or increasing the number of his clients and that the non- renewal leads to the agent loss of profits or commission resulting from that success unless the first party proofs that that non- renewal of contract is related to strong causes justifying that.

c) Should the first party violate any of the commitments stated in the commercial proxies system or in this contract.

Item (13): The first party has the right to claim compensation for the damage befallen him according to contract of commercial traditions.

Item (14): Disputes resulting from the execution of this contract and was not possible to solve it amicably between the two parties are solved through arbitration before an agreed upon local or outer arbitration body.

Item (15): This contract is subject to the rules of systems valid in the Kingdom of Saudi Arabia (1).

Item (16): This contract has been made of three copies, each party kept one copy for observation during his work. The second party shall submit the third copy to

the Ministry of Commerce to complete registration procedure in the commercial proxies register.

Second Party (Agent) First Party ( Mandator )



(1) If the contract was internal


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