International Sales Representative Agreement for United Arab Emirates

International Sales Representative Agreement Template for United Arab Emirates

A comprehensive legal agreement governed by UAE law that establishes and regulates the relationship between a principal company and its international sales representative. The document outlines the terms and conditions for the representation of products or services in specified territories, including commission structures, performance expectations, and compliance requirements. It incorporates specific provisions required under UAE Commercial Agency Law (Federal Law No. 18 of 1981) and related regulations, addressing crucial aspects such as territory exclusivity, registration requirements, and termination provisions that align with UAE legal framework.

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What is a International Sales Representative Agreement?

The International Sales Representative Agreement is a crucial document for companies seeking to expand their sales operations through representatives in international markets while maintaining compliance with UAE law. This agreement is particularly important when a company (Principal) wishes to appoint a representative to promote and sell their products or services in specific territories, establishing clear terms for the commercial relationship. The document must carefully consider the requirements of UAE Commercial Agency Law, which provides significant protections for registered agents, while also addressing practical aspects such as commission structures, performance targets, and territorial rights. It's essential for businesses expanding into Middle Eastern markets or UAE-based companies expanding internationally, requiring careful consideration of local legal requirements, commercial practices, and cross-border trade regulations.

What sections should be included in a International Sales Representative Agreement?

1. Parties: Identifies the principal company and the sales representative, including full legal names, registration details, and addresses

2. Background: Explains the context of the agreement, including the principal's business, products/services, and desire to appoint a sales representative

3. Definitions: Defines key terms used throughout the agreement, including Territory, Products, Customers, Commission, etc.

4. Appointment and Territory: Defines the nature of appointment (exclusive/non-exclusive), scope of territory, and any restrictions

5. Term and Renewal: Specifies the initial term, renewal conditions, and notice periods as per UAE law

6. Rights and Obligations of Sales Representative: Details the representative's duties, sales targets, reporting requirements, and compliance obligations

7. Rights and Obligations of Principal: Outlines the principal's commitments, support provisions, and supply obligations

8. Commission Structure: Details the commission rates, calculation methods, payment terms, and conditions for commission eligibility

9. Intellectual Property Rights: Governs the use of trademarks, trade names, and other IP during the agreement term

10. Confidentiality: Protects confidential information and trade secrets of both parties

11. Non-Competition and Non-Solicitation: Restricts competitive activities during and after the agreement term

12. Termination: Specifies termination grounds and procedures, considering UAE agency law protections

13. Post-Termination Obligations: Details obligations and rights after agreement termination

14. Governing Law and Dispute Resolution: Specifies UAE law as governing law and outlines dispute resolution procedures

What sections are optional to include in a International Sales Representative Agreement?

1. Registration Requirements: Required if the agreement needs to be registered with the UAE Commercial Agencies Register

2. Training and Support: Include when the principal provides specific training or support programs

3. Marketing and Advertising: Include when there are specific marketing obligations or restrictions

4. Insurance Requirements: Include when specific insurance coverage is required from either party

5. Sub-Representatives: Include if the representative is allowed to appoint sub-representatives

6. Product Warranty: Include when the representative handles warranty claims or provides warranty support

7. Compliance with Local Laws: Include detailed compliance requirements for specific regulated industries

8. Force Majeure: Include specific force majeure provisions beyond standard clauses

What schedules should be included in a International Sales Representative Agreement?

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

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

3. Schedule 3 - Commission Rates: Detailed commission structure, including any variations by product or customer type

4. Schedule 4 - Sales Targets: Annual or quarterly sales targets and any associated bonuses or penalties

5. Schedule 5 - Reporting Templates: Standard formats for sales reports and other required reporting

6. Schedule 6 - Trademark Usage Guidelines: Guidelines for using principal's trademarks and branding

7. Appendix A - Customer List: List of existing customers or protected accounts, if applicable

8. Appendix B - 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

Sales Agreement

Sector

Sales

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Manufacturing

Technology

Consumer Goods

Industrial Equipment

Healthcare and Medical Devices

Automotive

Electronics

Fashion and Luxury Goods

Construction Materials

Software and IT Services

Professional Services

Telecommunications

Food and Beverage

Chemical and Industrial Products

Pharmaceuticals

Relevant Teams

Legal

Sales

Business Development

Commercial

Compliance

International Operations

Finance

Corporate Development

Export

Contract Administration

Relevant Roles

Sales Director

Business Development Manager

International Sales Manager

Chief Commercial Officer

Legal Counsel

Contracts Manager

Commercial Director

Export Manager

Regional Sales Manager

Managing Director

Chief Executive Officer

Sales Operations Manager

Channel Manager

Distribution Manager

Compliance Officer

Industries
UAE Federal Law No. 18 of 1981 (Commercial Agency Law): Regulates commercial agency relationships in the UAE, including registration requirements, exclusivity rights, and termination provisions. This is crucial for sales representative agreements as it provides significant protection for registered agents.
UAE Federal Law No. 18 of 1993 (Commercial Transactions Law): Governs commercial transactions and business relationships, including general principles of commercial contracts, obligations, and rights of parties in commercial relationships.
UAE Federal Law No. 5 of 1985 (Civil Code): Contains general principles of contract law, including formation, validity, interpretation, and termination of contracts, which form the basic framework for any commercial agreement.
UAE Federal Law No. 8 of 1980 (Labor Law): Important to consider for determining whether the sales representative could be classified as an employee rather than an independent contractor, affecting rights and obligations.
UAE Federal Law No. 19 of 2018 (Foreign Direct Investment Law): Relevant for understanding restrictions and requirements for foreign businesses operating in the UAE through sales representatives.
UAE Federal Law No. 2 of 2015 (Commercial Companies Law): May be relevant if the sales representative agreement involves establishing a local presence or specific corporate structure in the UAE.
UAE Federal Law No. 24 of 2006 (Consumer Protection Law): Relevant if the sales representative will be dealing with end consumers, as it sets requirements for consumer protection and fair trading practices.
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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