Definition – duration – Obligations and obligations of the contract agent – Client’s obligations
Definition of contract agency:
The Contract Agency, as defined by the UAE Commercial Transactions Act No. 18 of 1993, is a contract whereby a person is obliged to incite and negotiate the conclusion of transactions in the client’s interest in return for pay. His task may include the conclusion and execution of such transactions in the client’s name and on his behalf.
Duration of some contract agencies:
If the contract requires the contract agent to set up showrooms or stores for goods, maintenance or repair facilities, the contract period shall not be less than five years unless otherwise agreed.
Obligations and rights of contract agent:
The contract agent shall conduct the work of his agency and administer his business independently, and shall bear the expenses necessary for the conduct of his business alone. The contract agent shall be obliged to preserve the rights of the client and shall take all necessary provisional measures to preserve these rights. He shall provide his client with data on the situation of the market in his area of activity. The contract agent may receive applications relating to the execution of contracts concluded through him, as well as complaints about the non-performance of such contracts, and shall be deemed to be a representative of his client in proceedings relating to such contracts, which are entered into by him or her in the agent’s area of activity. A contract agent may not hold the client’s rights, unless the client gives him this right, in which case the agent may not grant a reduction or a term without a special permit. He may not broadcast the client’s secrets which come to his attention on the occasion of the implementation of the Agency, even after the termination of the contractual relationship.
Client’s obligation:
The client is obliged to provide the agent with all necessary information for the agency’s implementation. The client shall be bound by the performance of the agreed remuneration of the agent. Such remuneration may be a percentage of the value of the transaction. This percentage shall be calculated on the basis of the sale price to the clients unless otherwise agreed. The contract agent shall be entitled to remuneration for transactions made or incomplete as a result of the client’s act unless the contract is otherwise served.
Replacement of contract agent with new agent:
If the client replaces the contract agent with a new agent, the new agent is jointly responsible for the performance of the former agent’s awards, once it is established that the replacement of the former agent was the result of collusion between the client and the new agent.
Competent courts:
shall be competent to hear all disputes arising out of the Contract Agency’s contract to which the contract is to be executed and shall not be heard at the time of denial and irrelevance of proceedings arising out of the Contract Agency’s contract three years after the expiration of the Agency.
These were the most important provisions of the Contract Agency as a type of commercial agency, which we have discussed in this research the definition, duration, obligations and obligations of the contract agent as well as the client’s obligations, in accordance with the UAE Commercial Transactions Act No. 18 of 1993.
