Agency Representation Agreement for United Arab Emirates

Agency Representation Agreement Template for United Arab Emirates

A comprehensive legal agreement governed by UAE law that establishes and regulates the relationship between a principal (typically a foreign company) and a local UAE agent or representative. The agreement complies with Federal Law No. 18 of 1981 (Commercial Agency Law) and its amendments, defining the scope of representation, territorial rights, commission structures, and obligations of both parties. It includes essential provisions for trademark usage, performance requirements, and termination conditions while ensuring compliance with local agency registration requirements where applicable.

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What is a Agency Representation Agreement?

The Agency Representation Agreement is a crucial document for businesses seeking to establish a commercial presence in the United Arab Emirates through local representation. This agreement type is specifically designed to comply with UAE Federal Law No. 18 of 1981 (Commercial Agency Law) and its amendments, which provide a comprehensive framework for commercial agency relationships. The document is essential when a foreign company (principal) wishes to appoint a UAE-based agent to represent their interests, distribute products, or provide services within specified Emirates. It addresses key aspects such as exclusivity rights, territory definition, commission structures, and registration requirements with the UAE Ministry of Economy. The agreement becomes particularly important given the UAE's specific requirements for commercial agency relationships and the significant legal protections afforded to registered commercial agents under local law.

What sections should be included in a Agency Representation Agreement?

1. Parties: Identification of Principal and Agent, including full legal names, addresses, and registration details as required by UAE law

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

3. Definitions: Key terms used throughout the agreement, including Territory, Products/Services, and other relevant definitions

4. Appointment and Scope: Terms of agent's appointment, exclusivity status, and detailed scope of representation

5. Territory: Specific geographical area where the agent is authorized to represent the principal

6. Duration and Renewal: Term of the agreement, conditions for renewal, and notice requirements

7. Rights and Obligations of the Agent: Detailed responsibilities, performance requirements, and conduct standards for the agent

8. Rights and Obligations of the Principal: Principal's commitments, support obligations, and responsibilities to the agent

9. Commission Structure: Detailed compensation terms, calculation methods, and payment conditions

10. Intellectual Property Rights: Usage rights and restrictions regarding principal's trademarks, trade names, and other IP

11. Confidentiality: Protection of confidential information and trade secrets

12. Termination: Grounds for termination, notice requirements, and consequences as per UAE law

13. Post-Termination Obligations: Duties and restrictions following agreement termination

14. Governing Law and Jurisdiction: Specification of UAE law governance and jurisdiction for disputes

15. Entire Agreement: Integration clause confirming the complete understanding between parties

What sections are optional to include in a Agency Representation Agreement?

1. Registration Requirements: Details about commercial agency registration with Ministry of Economy (required if qualifying as registered agency)

2. Performance Targets: Specific sales targets or performance metrics, if applicable

3. Marketing and Promotion: Specific requirements for marketing activities and cost allocation

4. Training and Support: Details of training and support provided by principal to agent

5. Sub-Agents: Terms for appointment of sub-agents if permitted

6. Insurance: Insurance requirements and coverage specifications

7. Force Majeure: Provisions for unforeseen circumstances preventing performance

8. Non-Competition: Post-termination competition restrictions if applicable

9. Compliance with Laws: Specific compliance requirements including anti-bribery and anti-corruption

10. Bank Guarantee: Requirements for performance guarantees or security deposits

What schedules should be included in a Agency Representation Agreement?

1. Schedule 1 - Products/Services: Detailed list of products or services covered by the agreement

2. Schedule 2 - Territory Definition: Detailed description of geographical territory including any exclusions

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

4. Schedule 4 - Performance Criteria: Specific performance targets and evaluation metrics

5. Schedule 5 - Trademark Usage Guidelines: Specific rules for use of principal's trademarks and branding

6. Schedule 6 - Required Reports: Templates and requirements for periodic reporting

7. Appendix A - Contact Details: Key contact information for both parties

8. Appendix B - Standard Operating Procedures: Detailed operational procedures and requirements

Authors

Alex Denne

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

Publisher

Genie AI

Document Type

Agency Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Retail

Consumer Goods

Manufacturing

Technology

Automotive

Pharmaceuticals

Fashion and Luxury

Industrial Equipment

Construction Materials

Food and Beverage

Electronics

Medical Devices

Telecommunications

Energy

Chemicals

Relevant Teams

Legal

Commercial

Business Development

Sales

Operations

Compliance

International Trade

Distribution

Corporate Affairs

Risk Management

Relevant Roles

Chief Executive Officer

Commercial Director

Business Development Manager

Legal Counsel

Contracts Manager

Sales Director

Managing Director

Country Manager

Regional Director

Compliance Officer

Operations Manager

General Manager

Distribution Manager

Partner

Head of Legal

Chief Commercial 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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