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Agency And Distribution Agreement for United Arab Emirates

Agency And Distribution Agreement Template for United Arab Emirates

A comprehensive legal agreement governed by UAE law that establishes and regulates the relationship between a principal/supplier and an agent/distributor for the marketing, sale, and distribution of products within the UAE market. This agreement must comply with Federal Law No. 18 of 1981 (Commercial Agency Law) and related regulations, particularly if the agency is to be registered with the Ministry of Economy. It covers essential aspects such as territory rights, performance obligations, pricing, intellectual property rights, and termination provisions, while incorporating specific protections mandated by UAE law for registered commercial agents.

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What is a Agency And Distribution Agreement?

The Agency And Distribution Agreement is a crucial document for companies seeking to establish a commercial presence in the United Arab Emirates through local partners. This agreement type is particularly important due to the UAE's requirement for foreign companies to work with local agents/distributors in certain sectors, and the significant legal protections offered to registered commercial agents under UAE law. The document must carefully balance international commercial practices with local legal requirements, particularly Federal Law No. 18 of 1981 and its amendments. It should detail all aspects of the principal-agent relationship, including territorial rights, exclusivity, performance targets, and termination provisions. Special attention must be paid to registration requirements with the UAE Ministry of Economy, as registered agreements provide agents with additional statutory protections and rights.

What sections should be included in a Agency And Distribution Agreement?

1. Parties: Identification of the Principal/Supplier and the Agent/Distributor with full legal names and addresses

2. Background: Context of the agreement, brief description of the parties' businesses, and their intentions

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

4. Appointment and Scope: Terms of appointment, exclusivity status, and territorial scope

5. Term and Renewal: Duration of the agreement and conditions for renewal

6. Rights and Obligations of Principal: Principal's responsibilities including supply obligations, training, support, and marketing assistance

7. Rights and Obligations of Agent/Distributor: Agent's responsibilities including sales targets, marketing efforts, and customer service

8. Products: Description and scope of products covered by the agreement

9. Territory: Detailed definition of the geographic area covered

10. Prices and Payment Terms: Pricing structure, payment conditions, and commission rates

11. Intellectual Property Rights: Usage rights and restrictions regarding trademarks, patents, and other IP

12. Confidentiality: Protection of confidential information and trade secrets

13. Non-Competition: Restrictions on competing activities during and after the agreement

14. Termination: Grounds for termination and termination procedures

15. Post-Termination: Rights and obligations after termination

16. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction for disputes

17. General Provisions: Standard boilerplate clauses including force majeure, notices, and amendments

What sections are optional to include in a Agency And Distribution Agreement?

1. Performance Targets: Detailed sales targets and performance metrics, used when specific performance levels are crucial

2. Marketing and Promotion: Specific marketing obligations and cost sharing, used when extensive marketing activities are required

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

4. After-Sales Service: Service and warranty obligations, essential for products requiring technical support

5. Insurance: Specific insurance requirements, important for high-value or high-risk products

6. Compliance with Laws: Specific regulatory compliance requirements, important in regulated industries

7. Data Protection: Specific data protection and privacy requirements, important when handling customer data

8. Sub-Agents: Rights and restrictions regarding appointment of sub-agents, used when sub-agency arrangements are contemplated

What schedules should be included in a Agency And Distribution Agreement?

1. Product List: Detailed list of products covered by the agreement with specifications

2. Price List: Current prices and discount structures

3. Territory Map: Detailed map or description of the territory boundaries

4. Performance Targets: Specific sales targets and KPIs

5. Commission Structure: Detailed breakdown of commission calculations and terms

6. Technical Requirements: Technical specifications and standards for product handling

7. Marketing Guidelines: Brand guidelines and marketing requirements

8. Service Level Agreement: Detailed service standards and response times

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

Consumer Goods

Electronics

Automotive

Pharmaceutical

Food and Beverage

Industrial Equipment

Fashion and Luxury Goods

Construction Materials

Medical Devices

Technology

Telecommunications

Home Appliances

Cosmetics and Personal Care

Machinery and Tools

Relevant Teams

Legal

Commercial

Sales

Business Development

Operations

Procurement

Compliance

Supply Chain

Distribution

International Trade

Corporate Affairs

Risk Management

Relevant Roles

Chief Executive Officer

Commercial Director

Sales Director

Business Development Manager

Legal Counsel

General Counsel

Procurement Manager

Operations Director

Distribution Manager

Regional Manager

Compliance Officer

Contract Manager

Supply Chain Manager

Chief Operating Officer

Country Manager

Export Manager

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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