Sourcing Fee Agreement Template for United Arab Emirates

A Sourcing Fee Agreement is essential for businesses operating in the UAE that engage external expertise for procurement and supplier identification services. This document type is particularly relevant given the UAE's position as a global trading hub and its extensive import/export activities. The agreement establishes the commercial relationship between a client and a sourcing agent/company, detailing fee structures, service scope, and performance expectations. It must comply with UAE commercial laws and regulations, including requirements for commercial agency relationships and foreign investment restrictions. The document becomes especially important in complex supply chain arrangements where specialized knowledge of supplier markets is required, and typically includes provisions for both success-based and regular fees, territory restrictions, and specific performance metrics.

1. Parties: Identifies the contracting parties - typically the sourcing agent/company and the client, including full legal names and registered addresses

2. Background: Sets out the context of the agreement, including the client's need for sourcing services and the agent's expertise

3. Definitions: Defines key terms used throughout the agreement for clarity and consistency

4. Appointment and Scope: Establishes the formal appointment of the sourcing agent and details the scope of services to be provided

5. Fee Structure: Details the agreed fee calculation methodology, payment terms, and conditions for fee entitlement

6. Payment Terms: Specifies payment timing, method, currency, and handling of expenses

7. Obligations of the Agent: Lists the specific duties and responsibilities of the sourcing agent

8. Obligations of the Client: Outlines the client's responsibilities and commitments

9. Term and Termination: Specifies the duration of the agreement and circumstances for termination

10. Confidentiality: Establishes obligations regarding confidential information protection

11. Intellectual Property: Addresses ownership and usage rights of any IP involved in the sourcing process

12. Liability and Indemnification: Sets out liability limitations and indemnification obligations

13. Governing Law and Jurisdiction: Specifies UAE law as governing law and establishes jurisdiction for disputes

14. General Provisions: Contains standard boilerplate clauses including force majeure, notices, and amendment procedures