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Agency Agreement for United Arab Emirates

Agency Agreement Template for United Arab Emirates

A comprehensive legal agreement governed by UAE law that establishes and regulates a commercial agency relationship between a principal and an agent. This document complies with UAE Federal Law No. 18 of 1981 (Commercial Agency Law) and its amendments, outlining the terms under which an agent will represent the principal's interests in the UAE market. The agreement covers essential aspects including appointment terms, territorial rights, commission structures, obligations of both parties, and termination provisions, while ensuring compliance with local agency registration requirements and commercial regulations.

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What is a Agency Agreement?

The Agency Agreement is a critical document for businesses seeking to establish a commercial presence in the United Arab Emirates through local representation. This agreement type is specifically regulated under UAE Federal Law No. 18 of 1981 (Commercial Agency Law) and subsequent amendments, which provide strict requirements for commercial agency relationships. The document is essential for foreign companies wanting to distribute products or services in the UAE market through a local agent, defining the scope of representation, territorial rights, commission structures, and mutual obligations. It must address specific local law requirements including potential registration with the UAE Ministry of Economy, exclusivity provisions, and termination rights. The agreement serves as the foundational document governing the principal-agent relationship and must carefully balance commercial interests with regulatory compliance.

What sections should be included in a Agency Agreement?

1. Parties: Identification of the Principal and Agent, including full legal names, addresses, and registration details

2. Background: Context of the agreement, relationship between parties, and purpose of the agency arrangement

3. Definitions: Definitions of key terms used throughout the agreement

4. Appointment and Scope: Terms of agent's appointment, territory, and products/services covered

5. Duration and Renewal: Term of the agreement and conditions for renewal

6. Rights and Obligations of the Agent: Detailed responsibilities, performance standards, and conduct requirements for the agent

7. Rights and Obligations of the Principal: Principal's commitments, support obligations, and responsibilities

8. Commission Structure: Payment terms, commission rates, calculation methods, and payment schedules

9. Intellectual Property Rights: Usage rights and restrictions regarding principal's trademarks and IP

10. Confidentiality: Protection of confidential information and trade secrets

11. Non-Competition: Restrictions on competing activities during and after the agreement

12. Termination: Grounds for termination, notice requirements, and consequences

13. Post-Termination Obligations: Duties and rights of both parties after agreement ends

14. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction for disputes

15. General Provisions: Standard clauses including force majeure, notices, and amendments

What sections are optional to include in a Agency Agreement?

1. Registration Requirements: Details of commercial agency registration with Ministry of Economy (required only for registered agencies)

2. Performance Targets: Specific sales targets or KPIs, included when performance measurement is crucial

3. Training and Support: Details of training and support provided by principal, included for complex products/services

4. Insurance: Insurance requirements and coverage details, included for high-risk activities

5. Sub-Agents: Terms for appointment of sub-agents, if permitted

6. Marketing and Promotion: Specific marketing obligations and cost-sharing arrangements

7. Compliance with Laws: Detailed compliance requirements for regulated industries

8. Stock Requirements: Minimum stock levels and warehouse requirements, for product distribution agreements

9. Dispute Resolution: Alternative dispute resolution procedures, if preferred over court proceedings

What schedules should be included in a Agency Agreement?

1. Schedule 1 - Products/Services: Detailed list of products or services covered by the agency

2. Schedule 2 - Territory: Detailed description of geographical territory and any exclusions

3. Schedule 3 - Commission Rates: Detailed commission structure, calculations, and examples

4. Schedule 4 - Performance Criteria: Specific KPIs, targets, and measurement methods

5. Schedule 5 - Trademark Usage Guidelines: Specific rules for use of principal's trademarks and branding

6. Schedule 6 - Reporting Templates: Standard forms for regular reporting requirements

7. Appendix A - Required Documentation: List of documents required for agency registration

8. Appendix B - Contact Details: Key contact persons and communication protocols

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Publisher

Ƶ

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions
























Clauses


































Relevant Industries

Retail

Consumer Goods

Manufacturing

Technology

Automotive

Healthcare

Construction

Fashion and Luxury

Industrial Equipment

Food and Beverage

Electronics

Telecommunications

Professional Services

Energy

Maritime

Relevant Teams

Legal

Commercial Operations

Business Development

Sales

Compliance

Corporate Affairs

International Operations

Distribution

Contract Administration

Risk Management

Relevant Roles

Chief Executive Officer

Commercial Director

Business Development Manager

Legal Counsel

Contracts Manager

Sales Director

Chief Operating Officer

Country Manager

Regional Director

Compliance Officer

Commercial Operations Manager

General Manager

Managing Director

Distribution Manager

Legal Director

Industries






Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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