Outline for the assignment:

Introduction:

This contract is a Legal support contract between STC and Trust for Legal Support and

Consultancy. STC would like hire the services of the Trust for legal support services in

legal issues.

We have selected this contract because we found it a complete contract with all legal pillars. In

addition, these types of contracts are very important and written carefully between both

parties.

Legal support is an essential need for every company. Any business owners are finding out that

even though they might have the smarts when it comes to computers and software, they don’t

have the time to keep up with the changes and they definitely don’t have the time to fix all the

problems that can arise.

The legal support company shall provide support as per terms and conditions mentioned in the

contract.

In this contract, we would like to explore the obligations and responsibilities of each party.

(http://www.articlesbase.com/information-technology-articles/the-importance-of-local-tech-

support-880590.html)

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The content of the contract:

Now, we are going to discuss this contract and its important clauses in the contract. In

addition, we are going to analyze the contract.

Content:

There are specific important elements in the contract that normally must be included in the

contract.

 Agreement ( offer by the second party and acceptance by the first party).

 Consideration: which is agreed by both parties to be paid to the second party for

rendering the services.

 Legal relations: there must be legal relation between both parties.

 Certainty: which must be there between both parities?

This is a legal contract between STC and a legal support company. STC conducted this contract

with that company to provide services they need in order to make sure that all transactions of the

company are legally and internationally recognized.

In this contract, some words have specific meaning only for this contract. They are explained in

the second and third page of the contract. Such clauses are mentioned usually in order to avoid

misunderstanding.

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Prior negotiations and other agreements between both parties:

In such contracts, normally there are prior agreements between both parties for each party must

know its responsibilities and obligations and rights as well. In addition, both parties should be

aware of the activities and past track of each other in the contract subject. For this purpose

normally the second party which is going to render its services and products submits his

certificates and past track in the field of business.

Agreement ( Offer and Acceptance)

The contract is normally conducted when there is an offer from the second party and

acceptance by the first party. Then both parties agrees on the terms and conditions of the

contract.

Acceptance is an expression by both parties to implement the terms and conditions of the

contract with diligence and perfection.

Consideration: (Fees of the Contract)

The First Party agrees to pay the Second Party certain consideration (fees) for the

services which the second party is going to provide for the first party in the way and

method mentioned in the contract. (http://contracts.lawyers.com/contracts/Contract-

Basics.html)

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Legal Relationship:

There must be legal relationship between both parties. Verbal agreement is not accepted.

The contract must be written and certified by the legal authorities in the country.

Commercial agreements will be considered as including a rebuttable intention to create a

legal binding agreement between both parties.

Legal Capacity:

Only people with legal capacity can enter into valid contract. Groups of people listed

below involve problematic consent, and are dealt with separately as follows:

 Young people (minors)

 people who have a mental impairment.

 Prisoners.

 Bankrupts.

Certainty:

Terms and conditions of the agreement must be certain and both parties must ascertain

them.

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There are certain clauses which are necessary to be included in every contract.

Among these clauses are:

 Parties: name and address of both Parties must be mentioned in the contract.

 Goods/ Services: the goods or services which will be rendered by either party must

be mentioned in the contract as well.

 Payment: the value of the contract, way and time of payment must also be

mentioned in the contract.

 Termination: this clauses upon which the contract shall be deemed terminated or

cancelled.

(http://www.entrepreneur.com/startingabusiness/startupbasics/legalissues/article28

884.html)

 Confidentiality: in the course of the contract implementation, both parties peruse

confidential information about the other party. Both parties agree to hold this

information as confidential and do not disclose them to any other party without

prior written consent.

 Indemnity: such clauses create an obligation for a party to make money payment

where certain losses or damage may occur.

 Diligence: both parties agree to do their responsibilities and obligations with

accuracy and perfection as enlisted in the contract terms.

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 The contract term period: the Contract period must be mentioned in the contract

document.

 Certified Language of correspondences:

 English is the certified language of the contract.

 Exclusion Clauses: there are not exclusion clauses in this contract.

 Termination clauses: termination of the contract must be made by notices in the

writing to be handed over by either party to the other party one week in advance of

the termination date of expiry date of this contract. Such termination should not

carry any penalties or liabilities to either party other than those specifically

provided for, under this contract.

 Performance of the contract: Since both parties have agreed under their full legal

capacity to conclude this contract according to all its terms and conditions

mentioned herein.

 Goods/ services: the party which is going to shall fix the duty hours and abide by

them as per the terms and conditions mentioned in the contract.

 Exemption Clause:

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 An exemption clause, also as known as an exclusion clause, serves to restrict

certain rights of named parties involved in the contract. Contracts may include

different types of exemption clauses.

 Significance:

 Both agreements are equally utilized to protect the interests of a business. The

agreement deter the intentional or accidental transmission of privacy information.

The legal ramification for breaching this contract ranges from seeking damages

and extolling penalties to protecting patent rights.

 Indemnity and insurance

 Contracts should include that both parties carry responsibilities and obligations.

 Legislative requirements:

 Both parties must follow the legislative requirements according to the rules and

regulations working in the Kingdom of Saudi Arabia.

 Settlement of disputes:

 Both parties agree that they will do their best to resolve and settle any disputes

arise due to this contract in amicably and friendly way. Once they fail to do so, the

laws and regulations working in Saudi Arabia will be the only ruling

 Liquidated damage clause:

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  Where it can be difficult to calculate the actual damages, it may be appropriate to

include “liquidated damages” in a contract. The most common form of “liquidated

damages” is probably the late fee charged following late receipt of payment.

(http://www.universitycounsel.iastate.edu/B%20-%20Contracts

%20Pages/contracts_Basics.html)

Appointment:

For the first party, it appoints the second party to provide legal services as assigned in the

project. The STC hereby appoints the Legal Support Provider to provide such services as may be

assigned to it on a project by project basis, and the Legal Support Provider agrees to render to the

STC such services so assigned to it on the terms and conditions hereunder.

The appointment of the Legal Support Provider shall not create an employment contract or

relationship.

The Legal Support Provider accepts the appointment. The Legal Support Provider understands

that this appointment does not assure appointment to a project, as projects will be allocated as

and when specific expertise is required.

Subject to clause 13.1, nothing in this Contract shall be taken to imply that the Legal Support

Provider may not accept or perform engagements for other companies, firms or persons provided

that such engagements shall not result in any conflict of interest between this contract and that of

other companies.

Throughout the term of this Agreement, the Legal Support Provider shall, when required, give to

the STC (or to such other person or persons as it may direct) such written or oral reports or
8
information regarding any of the services as the STC may reasonably require.

Duration:

This contract is for a period of one year, effective from the commencement Date to July 2006

unless terminated in terms of this Agreement.

FEES

The first party agreed to pay the second party the fees on quarterly basis.

INSURANCE

Neither the National Treasury nor the STC shall be responsible for providing any

insurance cover and the Legal Support Provider shall be responsible for arranging any

cover that may be required for the performance of this Agreement.

STATUS

The legal support provider is not allowed to represent the first party. His responsibilities are only

to provide the legal support as required by the first party.

Unless otherwise provided, the Legal Support Provider shall not act on behalf of or commit

the National Treasury or the STC to third parties or hold itself out or permit itself to be held

out as having any authority to do or say anything on behalf of or in the name of the National

9
 Treasury or the STC. The Legal Support Provider shall abstain from any statement or

behavior, which might be misunderstood in this respect.

To further the necessary and legitimate interests of the party making the disclosure,

provided that prior to such disclosure the other party’s consent in writing is received.

COPYRIGHT

Any reports or papers prepared by the Legal Support Provider pursuant to this

Agreement, together with any copyright therein will be the property of the STC who will

have the sole right to publish or authorize publication of the findings and/or reports.

Any invention, improvement or design made or process of information discovered by the

Legal Support Provider during the period of this Contract(whether capable of being

patented or registered or not) which affects or relates to the business of the STC shall

forthwith be disclosed to the STC and shall belong to and be the absolute property of the

STC.

12. EXCLUSIVITY AND REPORTING

12.1 On appointment the Legal Support Provider acknowledges that it shall only advise the STC in

that project and is precluded from advising any other party to that project in any capacity.

12.2 The Legal Support Provider shall furnish the STC with such information and periodic

reports as the STC may at any time reasonably request.

NOTICES

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 Both parties should agree on the way and method of exchanging correspondences. They

should clearly set their addresses and how to deliver letters and notices between each

other.

13 Any notice required to be given by either party to the other shall be in writing and shall be

served by sending the same by facsimile, personal delivery or registered post to the address of

the other party to receive it as stated below or such other address as may from time to time be

notified by either part to the other in writing and any receipt issued by the postal authority

shall be conclusive evidence of the fact and date of posting of any such notice.

(http://business.songstuff.com/article/recording_contract_basics/)

14 FORCE MAJEURE:

Neither party shall be considered to be in default or in breach of its obligations under this

Contract if the performance of such obligations is prevented by any circumstances of force

majeure which arise after the date when this contract becomes effective.

16. INDEMNITY

16.1 The Legal Support Provider shall exercise reasonable skill, care and diligence in the

performance of this Contract and shall indemnify and keep indemnified the STC, its

agents and employees in respect of any loss, damage or claim howsoever arising out

of or related to the execution or implementation of this Agreement.

LANGUAGE

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Herein this clause, something is missing. Arabic language must be there as a certified

language in the contract as Arabic is the formal language in Saudi Arabia.

17.1 Except as may otherwise be agreed all reports or other written or printed material

provided by the Legal Support Provider and all communications and correspondence

between the parties hereto related to this Contract shall be in the English language.

Suggestions:

 In Article 9: Disclosure of information

 “The Legal Support Provider shall not either directly or through its employees or

agents during or after termination of this Contract disclose to any third party any

information arising from this contract however acquired, except in the proper

performance of the Legal Support Provider's duties, provided the Legal Support

Provider has the prior written”

 The following can be added to this article:

 “in addition, for three more years after the completion of the contract, the second

party continue to keep the information of the First Party as confidential and do

NOT disclose it to any other party without prior written consent”.

 In Article 11: Termination

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 “The STC may terminate this Contract by a week’s written notice if in the opinion

of the STC the performance of the Legal Support Provider is unsatisfactory or

progress in the production of the deliverables is insufficient; or by summary notice

in the event of a material breach by the Legal Support Provider of its obligations

under this Agreement”.

 The notice period is not enough it is normally one month or more to enable the

second party to finalize the works that are going on.

 In Article 17: Language

 “Except as may otherwise be agreed all reports or other written or printed material

provided by the Legal Support Provider and all communications and

correspondence between the parties hereto related to this Contract shall be in the

English language”

 Arabic should be a certified language for the contract as well.

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Conclusion:

This contract is a legal support contract. It is almost includes all necessary and required clauses

but some more details should be added for such type of contracts like Arabic language as

certified language in correspondences. However, our assessment for this contract is high and

legally qualified. We have selected this contract because we find it includes the most important

clauses of the legal contract.

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References:
http://business.songstuff.com/article/recording_contract_basics/. (n.d.).

http://contracts.lawyers.com/contracts/Contract-Basics.html. (n.d.).

http://www.articlesbase.com/information-technology-articles/the-importance-
of-local-tech-support-880590.html. (n.d.).

http://www.entrepreneur.com/startingabusiness/startupbasics/legalissues/art
icle28884.html. (n.d.).

http://www.universitycounsel.iastate.edu/B%20-%20Contracts
%20Pages/contracts_Basics.html. (n.d.).

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