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Manufacturer Agent Agreement for United Arab Emirates

Manufacturer Agent Agreement Template for United Arab Emirates

A comprehensive legal agreement governed by UAE law that establishes and regulates the relationship between a manufacturer (principal) and their commercial agent in the United Arab Emirates. This document complies with Federal Law No. 18 of 1981 (Commercial Agency Law) and its amendments, outlining the terms for product distribution, sales representation, and market development within specified territories. The agreement details rights, obligations, commission structures, performance requirements, and termination provisions while ensuring compliance with UAE's strict commercial agency regulations and registration requirements.

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What is a Manufacturer Agent Agreement?

The Manufacturer Agent Agreement is a crucial document for companies seeking to establish a commercial presence in the UAE market through local representation. This agreement type is specifically regulated under UAE Federal Law No. 18 of 1981 and subsequent amendments, requiring registration with the UAE Ministry of Economy. The document establishes the framework for the commercial relationship, defining territorial rights, commission structures, performance expectations, and compliance requirements. It's particularly important as registered commercial agents in the UAE enjoy significant legal protections, including potential exclusivity rights and compensation upon termination. The agreement must carefully balance the manufacturer's business objectives with the strict requirements of UAE agency law, making it essential for both parties to clearly understand and document their rights and obligations.

What sections should be included in a Manufacturer Agent Agreement?

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

2. Background: Context of the agreement, brief description of the parties' businesses, and their intention to enter into an agency relationship

3. Definitions: Definitions of key terms used throughout the agreement, including Products, Territory, and Technical Information

4. Appointment and Scope: Terms of agent appointment, exclusivity status, and territorial scope as per UAE Agency Law

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

6. Agent's Rights and Obligations: Detailed responsibilities including promotion, sales targets, customer service, and market development

7. Manufacturer's Rights and Obligations: Support obligations, supply commitments, and training requirements

8. Financial Terms: Commission structure, payment terms, and currency specifications

9. Intellectual Property Rights: Usage rights for trademarks, patents, and other IP

10. Confidentiality: Protection of confidential information and trade secrets

11. Registration Requirements: Provisions regarding registration with UAE Ministry of Economy as per local law

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

13. Post-Termination Obligations: Responsibilities and restrictions 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 notices, amendments, and entire agreement

What sections are optional to include in a Manufacturer Agent Agreement?

1. Performance Targets: Detailed sales targets and performance metrics, recommended for larger commercial relationships

2. Marketing and Promotion: Specific marketing obligations and cost-sharing arrangements, useful for comprehensive marketing arrangements

3. Training Requirements: Detailed training obligations and procedures, important for technical products

4. Sub-Agents: Terms for appointment of sub-agents if allowed, needed when sub-agents might be required

5. Insurance: Specific insurance requirements and coverage levels, important for high-value products

6. Import/Export Compliance: Detailed provisions for customs and trade compliance, essential for international shipments

7. Data Protection: Specific data handling and protection requirements, important when dealing with personal data

8. Force Majeure: Detailed force majeure provisions, recommended for long-term agreements

What schedules should be included in a Manufacturer Agent Agreement?

1. Schedule 1 - Products: Detailed list of products covered by the agreement, including specifications and prices

2. Schedule 2 - Territory: Detailed description of the geographical territory, including any excluded areas

3. Schedule 3 - Commission Structure: Detailed breakdown of commission rates, calculation methods, and payment terms

4. Schedule 4 - Performance Criteria: Specific sales targets, KPIs, and evaluation metrics

5. Schedule 5 - Technical Requirements: Technical specifications, support requirements, and quality standards

6. Schedule 6 - Trademark Usage Guidelines: Guidelines for use of manufacturer's trademarks and branding

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

8. Appendix B - Reporting Templates: Standard forms for regular reporting and performance tracking

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

Manufacturing

Industrial Products

Consumer Goods

Automotive

Electronics

Medical Devices

Construction Equipment

Chemicals

Pharmaceuticals

Food and Beverage

Machinery and Equipment

Textiles

Technology

Telecommunications

Relevant Teams

Legal

Commercial

Sales

Business Development

Operations

Compliance

International Business

Distribution

Channel Management

Corporate Affairs

Strategy

Contract Administration

Relevant Roles

Chief Executive Officer

Commercial Director

Sales Director

Business Development Manager

Legal Counsel

Contracts Manager

Operations Director

Regional Manager

Distribution Manager

Channel Manager

Compliance Officer

International Business Manager

Export Manager

Managing Director

General Counsel

Sales and Marketing 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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