Broker Agreement for United Arab Emirates

Broker Agreement Template for United Arab Emirates

A comprehensive legal agreement governed by UAE law that establishes and regulates the relationship between a principal and a broker. The document outlines the terms under which the broker will represent the principal in specific transactions or business activities, including scope of services, compensation structure, territorial rights, and compliance requirements. It incorporates relevant provisions from UAE Commercial Agency Law (Federal Law No. 18 of 1981), UAE Civil Code, and sector-specific regulations, ensuring compliance with local legal requirements while protecting both parties' interests.

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What is a Broker Agreement?

The Broker Agreement is a critical document used to establish formal business relationships between principals and their appointed brokers in the UAE market. This agreement is essential when a company (principal) wishes to engage a broker to facilitate transactions, represent their interests, or access specific markets. The document must comply with UAE Federal Law No. 18 of 1981 (Commercial Agency Law) and other relevant regulations, particularly in regulated sectors such as real estate or financial services. The Broker Agreement typically includes detailed provisions on service scope, compensation, territorial rights, compliance requirements, and performance expectations, while addressing specific UAE legal requirements such as language considerations and local business practices. It's particularly important for businesses expanding their market presence through intermediaries or requiring specialized market access.

What sections should be included in a Broker Agreement?

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

2. Background: Context of the agreement and brief description of the parties' business relationship

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

4. Appointment and Scope: Terms of broker's appointment and detailed scope of services

5. Broker's Obligations: Detailed responsibilities and duties of the broker

6. Principal's Obligations: Responsibilities and obligations of the principal

7. Compensation: Commission structure, payment terms, and calculation methods

8. Term and Termination: Duration of the agreement and circumstances for termination

9. Confidentiality: Obligations regarding confidential information

10. Non-Competition and Non-Solicitation: Restrictions on competitive activities and client solicitation

11. Representations and Warranties: Key assurances and declarations by both parties

12. Liability and Indemnification: Extent of liability and indemnification obligations

13. Governing Law and Jurisdiction: Specification of UAE law application and jurisdiction for disputes

14. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment

What sections are optional to include in a Broker Agreement?

1. Exclusivity: Used when the broker is granted exclusive rights for specific territories or services

2. Performance Targets: Include when specific performance metrics or targets are required

3. Marketing and Promotion: When broker has specific marketing responsibilities or restrictions

4. Insurance: Required when specific insurance coverage needs to be maintained

5. Training and Support: When principal provides specific training or support services

6. Compliance with Specific Regulations: For regulated industries like real estate or financial services

7. Data Protection: When handling personal or sensitive data is part of the services

8. Force Majeure: When specific provisions for unforeseen circumstances are needed

9. Sub-Brokers: When appointment of sub-brokers is permitted

What schedules should be included in a Broker Agreement?

1. Schedule 1 - Services Description: Detailed description of brokerage services

2. Schedule 2 - Commission Structure: Detailed breakdown of commission calculations and payment terms

3. Schedule 3 - Territory: Definition of geographical area or market segment covered

4. Schedule 4 - Performance Metrics: Specific KPIs and performance measurement criteria

5. Schedule 5 - Compliance Requirements: Industry-specific regulatory requirements and compliance procedures

6. Schedule 6 - Approved Marketing Materials: List of approved marketing materials and usage guidelines

7. Appendix A - Required Licenses and Certifications: Copies or details of required regulatory licenses

8. Appendix B - Standard Operating Procedures: Operational procedures and guidelines

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

Agreement Contract

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Real Estate

Financial Services

Insurance

Commodities Trading

Import/Export

Securities and Investments

Commercial Property

Industrial Equipment

Automotive

Maritime

Construction

Technology Distribution

Healthcare Equipment

Professional Services

Relevant Teams

Legal

Commercial

Business Development

Sales

Compliance

Finance

Operations

Risk Management

Channel Management

Corporate Development

Strategic Planning

Partner Relations

Relevant Roles

Chief Executive Officer

Commercial Director

Business Development Manager

Legal Counsel

Compliance Officer

Sales Director

Channel Manager

Partnership Manager

Operations Director

Contract Manager

Risk Manager

Chief Financial Officer

Regional Manager

Agency Relationship Manager

Business Unit Head

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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