Many businesses lose significant amounts due to overdue or uncollected debts — often because of a poorly written or vague sales contract. But if you carefully draft the contract from the start, you can protect yourself legally and encourage clients to pay on time.
Here are key tips to help you build a clear, enforceable sales contract that shields you from delays or evasions:
1. Clearly Identify Both Parties
Start the contract with full identification of both sides:
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Client’s full name
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National ID or commercial registration number
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Address and contact details
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Your company’s legal information
The clearer the information, the stronger the contract legally.
2. Precise Description of Products or Services
Specify in detail:
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The product or service offered
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Quantity
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Quality/specifications
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Delivery time and location
Any ambiguity could be used as an excuse for delay or dispute.
3. Clearly Stated Final Price
Make sure the price section includes:
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Total amount (including VAT)
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Currency (e.g., Saudi Riyal)
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Additional fees (shipping, service, etc.)
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Whether the price is fixed or subject to conditions
Clarity here prevents future disputes.
4. Clear Payment Terms & Due Dates
Write explicitly:
“The second party (the client) agrees to pay the total amount of (_) SAR within a maximum of () days from the contract signing date.”
Also specify:
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Payment method (bank transfer, cheque, cash)
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Bank account details
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Late payment penalty (e.g., 1% per week of delay)
5. Late Payment or Breach Clause
Include a strong clause like:
“If the second party fails to pay on time, the first party has the right to take legal actions, including suspension of services, escalation to relevant authorities, or referring the case to a debt collection agency.”
This clause adds legal weight and discourages late payments.
6. Signatures & Company Stamps
Unsigned contracts are often invalid. Ensure:
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The client signs personally (or by an authorized representative)
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Both parties stamp the contract (if applicable)
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If possible, notarize the contract or validate it through a legal authority
7. Provide Copies to Both Parties
Each party should keep a signed copy.
It’s also recommended to keep a digital (PDF) copy securely stored in your system.
8. Use Legal & Professional Language
Avoid informal or improvised language.
Have a legal expert or lawyer review the contract, or use trusted templates that comply with Saudi commercial and corporate laws.
9. Add a Dispute Resolution Clause
Include language such as:
“In case of disputes, the matter shall first be resolved amicably. If no agreement is reached, the dispute shall be referred to the Commercial Court in [City Name].”
This helps define the process if legal escalation is needed.
10. Never Skip the Contract!
Many business owners say:
“We’ve known the client for years — we don’t need a contract.”
But the truth is, most issues arise from over-trusting long-time clients.
Always use a contract, no matter how good the relationship seems.
Full-Service Collection with Legal Protection
If you’re dealing with clients who frequently delay payments, and you want a team that can help with everything — from drafting contracts to legal collections — you can contact:
SAR Debt Collection Company
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Professional sales contracts
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Recovery of overdue payments
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Legal communication with clients
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Protection of your business reputation
📞 +966537778130
📞 +966544195383
Summary
A strong sales contract is your financial and legal shield.
✅ Don’t rely on verbal agreements
✅ Don’t leave terms vague
✅ Don’t sign anything you don’t fully understand
By following the tips above, you’ll ensure your money comes back on time — without headaches or losses.