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Commission Fee Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

Commission Fee Agreement

"I need a Commission Fee Agreement for my real estate company based in Dubai, UAE, to engage independent property consultants who will source potential buyers for our luxury residential developments, with a tiered commission structure based on property value and a contract start date of March 1, 2025."

Document background
The Commission Fee Agreement is a crucial document for businesses operating in the United Arab Emirates that rely on third-party representatives, agents, or consultants to generate sales or business opportunities. This agreement type is particularly important in the UAE market, where business relationships often involve intermediaries and commission-based arrangements. The document ensures compliance with UAE Federal Laws, including the Commercial Code (Federal Law No. 18 of 1993) and Commercial Agency Law (Federal Law No. 18 of 1981), while providing a clear framework for commission calculations, payment terms, and performance expectations. It is commonly used when engaging sales representatives, brokers, agents, or consultants who will be compensated based on successful transactions or introduced business opportunities. The agreement should be carefully structured to address specific requirements of UAE law regarding commercial agency relationships and commission-based compensation.
Suggested Sections

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 Commission, Territory, Products/Services, and other relevant definitions

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

5. Commission Structure: Detailed explanation of commission rates, calculation methods, and qualifying transactions

6. Payment Terms: Timeline for commission payments, payment methods, currency, and any conditions precedent

7. Obligations of Principal: Principal's responsibilities, including provision of information, support, and materials

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

9. Term and Termination: Duration of agreement, renewal terms, and termination provisions

10. Confidentiality: Protection of confidential information and trade secrets

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

Optional Sections

1. Non-Competition: Restrictions on agent's activities with competitors, used when protecting market position is crucial

2. Intellectual Property: IP rights and usage terms, included when branded materials or proprietary information is involved

3. Force Majeure: Provisions for unforeseen circumstances, recommended for longer-term agreements

4. Insurance: Insurance requirements and coverage details, important for high-value transactions

5. Compliance with Laws: Specific compliance obligations, particularly relevant for regulated industries

6. Assignment and Subcontracting: Rights to transfer obligations or use subcontractors, needed for complex business relationships

7. Data Protection: Data handling and privacy requirements, essential when personal data is processed

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

Suggested Schedules

1. Commission Rates Schedule: Detailed breakdown of commission rates for different products/services or transaction types

2. Territory Definition: Specific geographical areas or market segments covered by the agreement

3. Products and Services: Comprehensive list of products/services covered under the commission arrangement

4. Performance Targets: Specific sales targets or KPIs that affect commission rates

5. Reporting Template: Standard format for regular sales and activity reporting

6. Commission Calculation Examples: Practical examples showing how commission is calculated in various scenarios

Authors

Alex Denne

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

Relevant legal definitions

























Clauses




























Relevant Industries

Real Estate

Insurance

Financial Services

Retail

Technology

Manufacturing

Professional Services

Healthcare

Automotive

Construction

Tourism and Hospitality

Import/Export

Telecommunications

Relevant Teams

Legal

Sales

Business Development

Finance

Compliance

Commercial Operations

Procurement

Contract Administration

Partner Relations

Sales Operations

Relevant Roles

Sales Director

Business Development Manager

Commercial Director

Legal Counsel

Compliance Officer

Finance Manager

Sales Operations Manager

Channel Manager

Partner Manager

Chief Commercial Officer

Procurement Manager

Contract Administrator

Regional Sales Manager

Agency Relationship 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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