Commercial Management Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

Commercial Management Agreement

"I need a Commercial Management Agreement for my Dubai-based technology company to appoint an international management firm to oversee our Middle East operations, with specific focus on digital transformation and regional expansion."

Document background
The Commercial Management Agreement is essential for businesses operating in the UAE that seek to engage professional management services while maintaining compliance with local laws and regulations. This document is commonly used when a company requires external expertise for managing specific operations, projects, or entire business units. The agreement must align with UAE federal laws, including Federal Law No. 18 of 1993 (Commercial Transactions Law) and Federal Law No. 2 of 2015 (Commercial Companies Law). It typically includes detailed provisions for service scope, performance standards, fee structures, and governance mechanisms, while considering local business practices and regulatory requirements. The document is particularly relevant for businesses seeking to establish professional management relationships while ensuring proper risk allocation and clear accountability structures.
Suggested Sections

1. Parties: Identification of the parties entering into the agreement, including full legal names and registration details

2. Background: Context of the agreement and brief description of the parties' business relationship

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

4. Appointment and Scope: Terms of appointment and detailed scope of management services to be provided

5. Term and Renewal: Duration of the agreement and renewal provisions

6. Manager's Rights and Obligations: Detailed responsibilities, authority levels, and obligations of the management company

7. Client's Rights and Obligations: Responsibilities and obligations of the client company

8. Fees and Payment Terms: Management fees, payment schedule, expenses, and related financial terms

9. Performance Standards: Required service levels and performance metrics

10. Reporting and Oversight: Reporting requirements, meetings, and oversight mechanisms

11. Confidentiality: Protection of confidential information and trade secrets

12. Intellectual Property: Ownership and usage rights of intellectual property

13. Liability and Indemnification: Limitations of liability and indemnification provisions

14. Termination: Grounds for termination, notice periods, and consequences of termination

15. Governing Law and Dispute Resolution: Applicable law and dispute resolution mechanisms in accordance with UAE law

Optional Sections

1. Non-Competition: Restrictions on competitive activities, used when management services involve access to sensitive business information

2. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in long-term management agreements

3. Insurance: Insurance requirements, included when management services involve operational risks

4. Data Protection: Specific data protection obligations, required when personal or sensitive data processing is involved

5. Staff and Employment: Terms regarding personnel and employment matters, needed when management services include staff supervision

6. Change Control: Procedures for managing changes to services or terms, useful in complex management arrangements

7. Anti-Corruption: Compliance with anti-corruption laws, particularly important for international arrangements

8. Environmental Compliance: Environmental obligations, relevant for management of facilities or operations with environmental impact

Suggested Schedules

1. Schedule 1 - Services Description: Detailed description of management services to be provided

2. Schedule 2 - Fee Structure: Detailed breakdown of management fees, expenses, and payment terms

3. Schedule 3 - Key Performance Indicators: Specific performance metrics and measurement criteria

4. Schedule 4 - Reporting Requirements: Templates and specifications for required reports

5. Schedule 5 - Key Personnel: Details of key management team members and their roles

6. Schedule 6 - Service Levels: Detailed service level requirements and measurements

7. Appendix A - Power of Attorney: If required, specific powers granted to the management company

8. Appendix B - Operational Procedures: Detailed operational procedures and protocols

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

Relevant legal definitions
Relevant Industries

Real Estate

Hospitality

Retail

Manufacturing

Construction

Healthcare

Education

Technology

Logistics

Facilities Management

Professional Services

Tourism

Trading

Industrial Operations

Financial Services

Relevant Teams

Legal

Operations

Commercial

Finance

Risk & Compliance

Business Development

Project Management

Facilities Management

Human Resources

Procurement

Senior Management

Board of Directors

Relevant Roles

Chief Executive Officer

Managing Director

Operations Director

Commercial Director

Legal Counsel

Contract Manager

Business Development Manager

Project Manager

Facility Manager

Risk Manager

Compliance Officer

Financial Controller

General Manager

Department Head

Regional 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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