Broker Agent Commission Agreement Template for United Arab Emirates

The Broker Agent Commission Agreement is a critical document used in the UAE business environment to formalize the relationship between companies and their authorized brokers or agents. This agreement type is particularly important given the UAE's position as a major trading and business hub, where broker relationships are common across various sectors. The document must comply with UAE Federal Law No. 18 of 1981 (Commercial Agency Law) and other relevant emirate-specific regulations. It typically includes detailed commission structures, territorial rights, performance expectations, and compliance requirements. The agreement is essential for businesses operating through broker networks in the UAE, providing legal protection for both principals and brokers while ensuring regulatory compliance. It's particularly relevant for companies expanding their market presence through indirect sales channels or those requiring intermediary services in the UAE market.

1. Parties: Identification of the Principal and the Broker, including full legal names, licenses, and registration details as required by UAE law

2. Background: Context of the agreement, brief description of the Principal's business and the Broker's services

3. Definitions: Key terms used throughout the agreement, including 'Commission', 'Territory', 'Products/Services', 'Qualified Transaction'

4. Appointment and Scope: Terms of broker appointment, exclusivity/non-exclusivity, territory definition, and scope of authorized activities

5. Term and Termination: Duration of the agreement, renewal terms, and conditions for termination

6. Broker's Rights and Obligations: Detailed responsibilities, compliance requirements, reporting obligations, and performance standards

7. Principal's Rights and Obligations: Support to be provided, information sharing, and other obligations of the principal

8. Commission Structure: Detailed commission calculations, payment terms, and conditions for commission eligibility

9. Payment Terms: Timeline for payments, currency, method of payment, and handling of taxes

10. Confidentiality: Protection of confidential information and trade secrets

11. Compliance with Laws: Obligations to comply with UAE laws, including specific reference to relevant regulations

12. Dispute Resolution: Process for resolving disputes, applicable law, and jurisdiction

13. General Provisions: Standard clauses including notices, amendments, assignment, and entire agreement