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General Agent Contract for United Arab Emirates

General Agent Contract Template for United Arab Emirates

A comprehensive legal agreement governed by UAE law that establishes and regulates a commercial agency relationship between a principal (typically a foreign company) and a UAE-based agent. The document complies with Federal Law No. 18 of 1981 (Commercial Agency Law) and outlines the agent's authority to represent the principal in the specified territory, including rights to sell products, provide services, and conduct business on the principal's behalf. It details commission structures, territorial rights, obligations of both parties, and termination provisions, while ensuring compliance with UAE's specific requirements for commercial agency relationships.

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What is a General Agent Contract?

The General Agent Contract is a fundamental commercial document used when a company (typically foreign) wishes to establish a formal commercial presence in the United Arab Emirates through a local agent. This arrangement is governed by UAE Federal Law No. 18 of 1981 (Commercial Agency Law) and related regulations, which require specific provisions and often mandate registration with the Ministry of Economy. The document details the scope of the agent's authority, territorial rights, commission structures, and mutual obligations, while ensuring compliance with UAE legal requirements. It's particularly important as registered commercial agencies in the UAE receive significant legal protection, and the relationship can be complex to terminate. The contract typically includes provisions for product distribution, market development, customer support, and brand representation, making it essential for companies seeking to expand their presence in the UAE market.

What sections should be included in a General Agent Contract?

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

2. Background: Context of the agreement and relationship between the parties

3. Definitions: Key terms used throughout the agreement

4. Appointment and Scope: Express appointment of agent and detailed scope of authority

5. Territory: Geographic area where agent is authorized to operate

6. Products/Services: Detailed description of products/services covered by the agency

7. Rights and Obligations of Agent: Comprehensive list of agent's duties, responsibilities and rights

8. Rights and Obligations of Principal: Principal's commitments, support obligations and rights

9. Commission Structure: Detailed compensation terms including commission rates and payment terms

10. Term and Renewal: Duration of agreement and renewal provisions

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

12. Confidentiality: Protection of confidential information and trade secrets

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

14. Intellectual Property: Usage rights and protection of trademarks, patents and other IP

15. Governing Law and Jurisdiction: UAE law as governing law and jurisdiction details

16. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

What sections are optional to include in a General Agent Contract?

1. Performance Targets: Specific sales or performance targets, used when principal wants to establish measurable objectives

2. Marketing and Promotion: Specific marketing obligations and cost sharing, relevant for consumer-facing products

3. Training Requirements: Required training for agent's staff, important for technical products

4. Sub-Agents: Rights and restrictions regarding appointment of sub-agents, if permitted

5. Insurance: Insurance requirements for agent, particularly relevant for high-value products

6. Bank Guarantee: Requirements for bank guarantees or other security, used for high-value arrangements

7. Compliance: Specific compliance obligations, particularly important in regulated industries

8. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in long-term agreements

What schedules should be included in a General Agent Contract?

1. Product Schedule: Detailed list and specifications of products covered by the agency

2. Commission Schedule: Detailed breakdown of commission rates, calculation methods and examples

3. Territory Map: Detailed mapping and description of the authorized territory

4. Performance Metrics: Specific KPIs and measurement criteria

5. Brand Guidelines: Principal's branding requirements and usage guidelines

6. Required Reports: Templates and examples of required periodic reports

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

8. Standard Operating Procedures: Detailed operational procedures and requirements

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

Cost

Free to use
Relevant legal definitions






























Clauses






























Relevant Industries

Retail

Manufacturing

Consumer Goods

Automotive

Electronics

Construction

Healthcare

Industrial Equipment

Luxury Goods

Technology

Food and Beverage

Fashion and Apparel

Pharmaceuticals

Telecommunications

Energy

Relevant Teams

Legal

Commercial

Business Development

Sales

Operations

Compliance

International Trade

Distribution

Corporate Affairs

Executive Leadership

Relevant Roles

Chief Executive Officer

Commercial Director

Business Development Manager

Legal Counsel

Regional Manager

Country Manager

Sales Director

Distribution Manager

Contract Manager

Compliance Officer

General Manager

Managing Director

Operations Director

Chief Commercial Officer

Chief Legal Officer

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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