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The Sales Representative Agreement is a crucial document for companies seeking to establish or expand their sales presence in the United Arab Emirates and potentially the broader Middle East region. This agreement is particularly important given the UAE's specific legal framework regarding commercial agency and sales representation, including Federal Law No. 18 of 1981 (Commercial Agency Law) and its amendments. The document is designed to clearly define the relationship between the principal and the sales representative, establishing rights, responsibilities, and commercial terms while ensuring compliance with local regulations. It's commonly used when a company wants to engage either an individual or corporate entity to promote and sell their products/services without establishing their own local sales force, making it particularly valuable for foreign companies entering the UAE market or local companies expanding their sales channels.

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

2. Background: Context of the agreement, relationship between parties, and brief description of the business purpose

3. Definitions: Key terms used throughout the agreement, including Products, Territory, and Commission

4. Appointment and Scope: Terms of appointment, whether exclusive or non-exclusive, and precise scope of representative's authority

5. Territory: Defined geographical area where the representative is authorized to operate

6. Term and Termination: Duration of the agreement, renewal provisions, and grounds for termination

7. Duties and Obligations of Sales Representative: Detailed responsibilities, sales targets, reporting requirements, and conduct standards

8. Principal's Obligations: Support, training, marketing materials, and other obligations of the principal

9. Commission Structure: Calculation method, payment terms, and conditions for commission earnings

10. Intellectual Property Rights: Usage rights and restrictions regarding principal's trademarks and materials

11. Confidentiality: Protection of confidential information and trade secrets

12. Non-Competition and Non-Solicitation: Restrictions during and after the agreement term

13. Compliance with Laws: Obligation to comply with UAE laws and specific industry regulations

14. Governing Law and Dispute Resolution: UAE law as governing law and dispute resolution mechanisms