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Sales Mandate Agreement

Sales Mandate Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

Sales Mandate Agreement

"I need a Sales Mandate Agreement for appointing an exclusive sales agent in Dubai to represent our luxury automotive parts business, with a minimum annual sales target of 5 million AED and quarterly performance reviews starting from March 2025."

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Document background
The Sales Mandate Agreement is essential for businesses seeking to establish or expand their sales presence in the United Arab Emirates through authorized representatives. This document type is particularly crucial given the UAE's specific legal requirements for commercial agency relationships and the need for clear documentation of sales authority. The agreement typically includes detailed provisions on sales territories, commission structures, performance metrics, and compliance with local laws. It's commonly used when a company wants to appoint a sales agent without establishing a direct presence in the UAE, or when expanding existing operations through authorized representatives. The document must comply with UAE Federal Law No. 18 of 1993 (Commercial Code) and related regulations, making it a critical tool for establishing legally sound sales relationships in the UAE market.
Suggested Sections

1. Parties: Identification of the Principal and Sales Agent/Mandatee, including full legal names, addresses, and registration details

2. Background: Context of the agreement, business relationship, and purpose of the sales mandate

3. Definitions: Key terms used throughout the agreement, including Territory, Products, Customers, and other relevant definitions

4. Appointment and Scope: Details of the sales mandate, territory coverage, and extent of authority granted

5. Rights and Obligations: Specific duties and responsibilities of both Principal and Sales Agent

6. Commission Structure: Details of compensation, commission rates, and payment terms

7. Term and Termination: Duration of the agreement and conditions for termination

8. Confidentiality: Protection of confidential information and trade secrets

9. Non-Competition: Restrictions on competitive activities during and after the agreement

10. Governing Law and Jurisdiction: Specification of UAE law application and dispute resolution mechanisms

Optional Sections

1. Performance Targets: Specific sales targets and performance metrics, used when quantifiable goals are part of the mandate

2. Training and Support: Details of training and support provided by Principal, included when significant product knowledge is required

3. Insurance Requirements: Specific insurance obligations, included for high-value or high-risk products

4. Intellectual Property: IP rights and usage terms, included when branding or patents are involved

5. Data Protection: Compliance with data protection laws, included when personal data processing is involved

6. Force Majeure: Provisions for unforeseen circumstances, recommended for long-term agreements

Suggested Schedules

1. Schedule 1 - Product List: Detailed list of products covered under the sales mandate

2. Schedule 2 - Territory Definition: Specific geographical areas or market segments covered

3. Schedule 3 - Commission Calculations: Detailed breakdown of commission structures and calculation methods

4. Schedule 4 - Performance Metrics: Specific KPIs and measurement criteria

5. Schedule 5 - Reporting Templates: Standard formats for sales reports and performance tracking

6. Appendix A - Power of Attorney: Required legal documentation for UAE agency registration if applicable

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

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant Industries

Retail

Manufacturing

Technology

Consumer Goods

Industrial Equipment

Automotive

Healthcare

Construction Materials

Fashion and Luxury Goods

Electronics

Food and Beverage

Professional Services

Relevant Teams

Legal

Sales

Business Development

Commercial Operations

Compliance

Executive Leadership

Contract Administration

International Business

Channel Management

Relevant Roles

Sales Director

Commercial Director

Business Development Manager

Legal Counsel

Chief Commercial Officer

Regional Sales Manager

Managing Director

Contract Manager

Compliance Officer

Chief Executive Officer

Sales Operations Manager

Channel Manager

Industries
UAE Federal Law No. 5 of 1985 (Civil Code): Governs general contract principles, formation of contracts, validity conditions, and agency relationships in the UAE
UAE Federal Law No. 18 of 1993 (Commercial Code): Regulates commercial transactions and business activities, including provisions about commercial agency and representation
UAE Federal Law No. 14 of 1988 (Commercial Agency Law): Specifically regulates commercial agency relationships, registration requirements, and protection of commercial agents
UAE Federal Law No. 2 of 2015 (Commercial Companies Law): Governs company formations and foreign ownership restrictions which may affect the parties' ability to enter into sales agreements
UAE Federal Law No. 19 of 2018 (Foreign Direct Investment Law): Regulates foreign investment activities and ownership in UAE mainland companies, which may affect sales mandate relationships
UAE Federal Law No. 15 of 2020 (Consumer Protection Law): Contains provisions related to consumer protection which may be relevant if the sales mandate involves consumer products
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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