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International Commercial Agency Contract for United Arab Emirates

International Commercial Agency Contract Template for United Arab Emirates

This document establishes a commercial agency relationship between a foreign principal and a UAE-based agent, governed by UAE Federal Law No. 18 of 1981 (Commercial Agency Law) and its amendments. It outlines the terms and conditions under which the agent will represent the principal in the UAE market, including territorial rights, commission structures, and mutual obligations. The agreement addresses mandatory requirements under UAE law while incorporating international commercial best practices, making it suitable for cross-border business relationships. It includes provisions for registration with the UAE Commercial Agency Register, which provides statutory protections for registered agents.

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International Commercial Agency Contract

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What is a International Commercial Agency Contract?

The International Commercial Agency Contract is essential for foreign companies seeking to establish or maintain a commercial presence in the UAE market through local agents. This document type is specifically designed to comply with UAE Federal Law No. 18 of 1981 (Commercial Agency Law) and related regulations, which provide significant protections for registered commercial agents. It's particularly relevant when a foreign company (principal) wishes to appoint a UAE-based entity (agent) to promote and sell their products or services within specified Emirates. The agreement must address mandatory legal requirements while balancing commercial interests, including detailed provisions on territory, exclusivity, commission structures, and termination rights. Due to the stringent nature of UAE agency laws and the significant protections afforded to local agents, this document requires careful consideration of both legal compliance and business strategy.

What sections should be included in a International Commercial Agency Contract?

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

2. Background: Context of the agreement, brief description of the parties' businesses, and their intentions

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

4. Appointment and Scope: Express appointment of agent, exclusivity status, and detailed scope of agency

5. Territory: Precise definition of the geographical area covered by the agency

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

7. Duration and Renewal: Term of the agreement, renewal conditions, and notice periods

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

9. Rights and Obligations of the Principal: Comprehensive list of principal's duties, responsibilities, and rights

10. Commission Structure: Detailed commission calculations, payment terms, and conditions

11. Intellectual Property Rights: Usage rights and restrictions regarding trademarks, patents, and other IP

12. Confidentiality: Confidentiality obligations and handling of proprietary information

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

14. Post-Termination Obligations: Obligations and restrictions following agreement termination

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

16. Dispute Resolution: Procedures for handling disputes, including arbitration provisions

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

What sections are optional to include in a International Commercial Agency Contract?

1. Performance Targets: Specific sales targets or performance metrics, used when the principal wants to ensure minimum performance levels

2. Marketing and Promotion: Specific marketing obligations and budget requirements, included when marketing is a key aspect of the agency

3. Training Requirements: Details of required training programs, included when product/service complexity requires specific training

4. Sub-Agents: Provisions regarding the appointment of sub-agents, included when sub-agents may be needed

5. Insurance Requirements: Specific insurance obligations, included when risk management is a particular concern

6. Stock Requirements: Minimum stock levels and storage requirements, included for product-based agencies

7. Customer Service Standards: Specific customer service requirements, included when customer service is crucial

8. Compliance with Laws: Specific compliance requirements, included when operating in highly regulated sectors

9. Data Protection: Specific data protection obligations, included when personal data processing is involved

What schedules should be included in a International Commercial Agency Contract?

1. Product/Service Schedule: Detailed list and specifications of products/services covered by the agreement

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

3. Territory Map: Detailed map and/or description of the territory boundaries

4. Trademark Schedule: List and images of all relevant trademarks and usage guidelines

5. Performance Metrics Schedule: Detailed performance targets and measurement criteria

6. Required Reports Format: Templates and formats for required regular reporting

7. Marketing Guidelines: Detailed marketing requirements and brand guidelines

8. Contact Details: List of key contacts and communication protocols 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

Agency Agreement

Cost

Free to use
Relevant legal definitions



























Clauses































Relevant Industries

Consumer Goods

Industrial Equipment

Automotive

Technology and Software

Healthcare and Medical Devices

Fashion and Luxury Goods

Construction Materials

Food and Beverage

Electronics

Pharmaceuticals

Manufacturing

Professional Services

Telecommunications

Relevant Teams

Legal

Commercial

International Business Development

Sales

Compliance

Operations

Business Development

Corporate Affairs

Strategy

Risk Management

Relevant Roles

International Business Development Manager

Legal Counsel

Commercial Director

Chief Executive Officer

Managing Director

Sales Director

Compliance Officer

Contract Manager

Business Development Director

Regional Manager

General Manager

Operations Director

Chief Commercial Officer

International Sales 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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