The Termination Of Agency Contract is a crucial document used when ending a registered commercial agency relationship in the UAE. It's specifically designed to comply with the UAE's protective agency laws, particularly Federal Law No. 18 of 1981 and its amendments, which provide significant protection to registered commercial agents. This document becomes necessary when either the principal or agent wishes to terminate their relationship, whether by mutual agreement or unilateral decision, and must address mandatory requirements such as compensation, notice periods, and de-registration procedures. The document typically includes provisions for handling outstanding commissions, inventory management, customer transitions, and post-termination obligations. Given the strict regulation of commercial agencies in the UAE and the potential for disputes, this agreement requires careful consideration of both legal compliance and practical business considerations.
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1. Parties: Identification of Principal and Agent, including registration details and commercial license numbers
2. Background: Details of the original agency agreement, registration status, and brief history of the commercial relationship
3. Definitions: Key terms used in the agreement including Territory, Products, Agency Registration, and Effective Date of Termination
4. Termination: Clear statement of termination, effective date, and grounds for termination in accordance with UAE law
5. Outstanding Obligations: Settlement of accounts, pending orders, and outstanding commissions
6. Handover Requirements: Requirements for transfer of business materials, customer data, and documentation
7. De-registration: Process and obligations regarding de-registration from the Commercial Agencies Register
8. Confidentiality: Ongoing obligations regarding confidential information and trade secrets
9. Non-Compete and Non-Solicitation: Post-termination restrictions on competitive activities and customer solicitation
10. Governing Law and Jurisdiction: Confirmation of UAE law application and relevant dispute resolution mechanisms
1. Compensation: Details of any agreed compensation for termination - used when termination includes compensation package
2. Inventory Management: Procedures for handling remaining stock and inventory - required if agent holds product inventory
3. Transition Period: Terms for business transition to new agent or principal - used when requiring managed handover
4. Customer Notification: Process for informing customers of the termination - important for customer-facing agencies
5. Intellectual Property: Provisions regarding use of trademarks and IP post-termination - crucial if agent had IP rights
6. Bank Guarantees: Provisions for release or maintenance of bank guarantees - needed if guarantees were part of agreement
1. Schedule 1 - Original Agency Agreement: Copy of the original agency agreement and any amendments
2. Schedule 2 - Commercial Agency Registration Certificate: Copy of the registration certificate from the UAE Ministry of Economy
3. Schedule 3 - Outstanding Payments Schedule: Detailed list of all outstanding payments and commissions
4. Schedule 4 - Handover Checklist: Comprehensive list of items and documents to be returned or transferred
5. Schedule 5 - Inventory List: Current inventory status and agreed disposal or transfer method
6. Appendix A - De-registration Forms: Required forms for de-registration from Commercial Agencies Register
Authors
Relevant legal definitions
Clauses
Relevant Industries
Retail
Consumer Goods
Automotive
Manufacturing
Pharmaceuticals
Electronics
Construction Equipment
Luxury Goods
Industrial Equipment
Food and Beverage
Fashion and Apparel
Technology
Medical Equipment
Relevant Teams
Legal
Commercial
Sales
Business Development
Operations
Compliance
International Trade
Distribution
Contract Management
Executive Leadership
Relevant Roles
Chief Executive Officer
Commercial Director
Head of Legal
Legal Counsel
Business Development Manager
Sales Director
Regional Manager
Distribution Manager
Contract Manager
Compliance Officer
Operations Director
Managing Director
General Manager
Agency Relations Manager
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