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The Draw Against Commission Agreement is essential in UAE business relationships where commission agents require advance access to funds based on projected earnings. This document type is commonly used in commercial agency, distribution, and sales relationships governed by UAE law, particularly when agents need working capital to operate effectively. The agreement must comply with UAE Federal Law No. 18 of 1993 (Commercial Transactions Law) and related regulations, making it suitable for businesses operating in free zones or mainland UAE. It typically includes detailed provisions for drawing limits, commission structures, settlement procedures, and security arrangements, balancing the principal's risk management needs with the agent's cash flow requirements.

1. Parties: Identification of the principal and commission agent with full legal names and addresses

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

3. Definitions: Key terms used throughout the agreement including Commission, Draw Amount, Settlement Period, etc.

4. Appointment and Scope: Formal appointment of the commission agent and detailed scope of services

5. Drawing Rights: Terms and conditions for drawing funds, including limits and frequency

6. Commission Structure: Detailed explanation of commission calculations, rates, and basis

7. Payment Terms: Terms for commission payments, settlements, and reconciliation procedures

8. Obligations of the Principal: Principal's responsibilities including providing information and support

9. Obligations of the Commission Agent: Agent's duties, reporting requirements, and performance standards

10. Accounting and Records: Requirements for maintaining financial records and reporting

11. Term and Termination: Duration of agreement and termination provisions

12. Confidentiality: Protection of confidential information and trade secrets

13. Governing Law and Jurisdiction: Specification of UAE law application and jurisdiction

14. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment