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Commission Agreement for United Arab Emirates

Commission Agreement Template for United Arab Emirates

A Commission Agreement governed by UAE law establishes the terms and conditions for commission-based business relationships between a principal and an agent/representative. This document outlines commission rates, payment terms, performance expectations, and territorial rights while ensuring compliance with UAE Federal Laws, including the Commercial Agency Law and Civil Code. It includes provisions for dispute resolution under UAE jurisdiction and may incorporate Sharia-compliant elements where necessary. The agreement details reporting requirements, performance metrics, and conditions for earning and paying commissions.

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What is a Commission Agreement?

The Commission Agreement is a crucial legal document used in the United Arab Emirates to formalize commission-based business relationships. It is essential for companies engaging sales agents, brokers, or representatives who earn compensation based on successful transactions or achieved targets. This document must comply with UAE Federal Law No. 18 of 1993 (Commercial Transactions Law) and other relevant regulations. The agreement typically outlines commission structures, territorial rights, performance expectations, and payment terms. It's particularly important in sectors like real estate, financial services, and retail where commission-based compensation is common. The document should be carefully drafted to address both UAE legal requirements and practical business needs, including any necessary Sharia-compliant provisions.

What sections should be included in a Commission Agreement?

1. Parties: Identification of the principal and agent/commissioner, including full legal names, addresses, and registration details

2. Background: Context of the agreement, business relationship, and purpose of the commission arrangement

3. Definitions: Key terms used throughout the agreement, including specific industry terminology and commission-related definitions

4. Appointment and Scope: Terms of appointment, exclusivity/non-exclusivity, and detailed scope of services

5. Territory and Products/Services: Definition of geographical area and specific products/services covered by the agreement

6. Commission Structure: Detailed commission rates, calculation methods, and payment terms

7. Payment Terms: Timeline for payments, currency, method of payment, and handling of taxes

8. Obligations of Principal: Principal's duties, including provision of information, support, and materials

9. Obligations of Agent: Agent's duties, performance standards, and reporting requirements

10. Term and Termination: Duration of agreement, renewal terms, and grounds for termination

11. Confidentiality: Protection of confidential information and trade secrets

12. Non-Competition and Non-Solicitation: Restrictions on competitive activities and client solicitation

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

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

What sections are optional to include in a Commission Agreement?

1. Regulatory Compliance: Include when operating in regulated industries like financial services or insurance

2. Intellectual Property Rights: Include when the commission arrangement involves use of trademarks, patents, or other IP

3. Data Protection: Include when personal data processing is involved in the commission activities

4. Insurance Requirements: Include when specific insurance coverage is required for the agent

5. Training and Support: Include when principal provides specific training or support systems

6. Performance Targets: Include when commission rates are tied to performance metrics

7. Sharia Compliance: Include when parties require explicit Sharia compliance provisions

8. Sub-Agents: Include when agent is permitted to appoint sub-agents

9. Marketing and Promotion: Include when agent has specific marketing responsibilities

What schedules should be included in a Commission Agreement?

1. Commission Rates Schedule: Detailed breakdown of commission rates, tiers, and special rates

2. Territory Description: Detailed description of geographical territories and any exclusions

3. Products and Services: Comprehensive list of products/services covered by the agreement

4. Performance Metrics: Specific KPIs, targets, and measurement criteria

5. Reporting Templates: Standard forms for periodic reporting and commission calculations

6. Required Documentation: List of documents required for commission claims and verification

7. Approved Marketing Materials: Templates or guidelines for marketing and promotional materials

8. Contact Details: Key contact persons and escalation matrix for both parties

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

Real Estate

Financial Services

Insurance

Retail

Manufacturing

Technology

Professional Services

Construction

Automotive

Healthcare

Telecommunications

Energy

Trading and Distribution

Relevant Teams

Legal

Sales

Finance

Compliance

Human Resources

Operations

Commercial

Business Development

Contract Administration

Risk Management

Relevant Roles

Sales Director

Business Development Manager

Commercial Director

Legal Counsel

Compliance Officer

Finance Manager

Human Resources Director

Operations Manager

Regional Sales Manager

Channel Manager

Chief Commercial Officer

Contracts Manager

Agency Relations Manager

Commission Administration Manager

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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