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Intermediary Commission Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

Intermediary Commission Agreement

"I need an Intermediary Commission Agreement for my Dubai-based real estate company, appointing a sales agent with a tiered commission structure starting from March 2025, including quarterly performance targets and compliance with UAE real estate regulations."

Document background
The Intermediary Commission Agreement is essential for businesses operating in the UAE market through representatives or agents. This document is particularly relevant when a company (principal) wishes to engage an intermediary to promote their products or services in specific UAE territories in exchange for commission-based compensation. The agreement must comply with UAE Federal Law No. 18 of 1993 (Commercial Transactions Law) and related regulations governing commercial agency relationships. It typically includes detailed provisions on commission calculations, payment terms, territorial rights, performance expectations, and compliance requirements. This type of agreement is commonly used in various business scenarios, from market entry strategies to ongoing business development initiatives, and can be adapted to accommodate different business models while maintaining compliance with UAE legal requirements.
Suggested Sections

1. Parties: Identification of the principal and intermediary, including full legal names, addresses, and registration details

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

3. Definitions: Key terms used throughout the agreement, including specific commercial and legal terminology

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

5. Territory and Exclusivity: Geographic area of operation and any exclusivity arrangements

6. Commission Structure: Detailed breakdown of commission rates, calculation methods, and payment terms

7. Payment Terms: Payment schedule, currency, method of payment, and handling of expenses

8. Obligations of the Intermediary: Detailed responsibilities, performance standards, and compliance requirements

9. Obligations of the Principal: Principal's duties, support to be provided, and information sharing requirements

10. Compliance with Laws: Obligations to comply with UAE laws, particularly commercial agency and tax regulations

11. Term and Termination: Duration of agreement, renewal terms, and termination provisions

12. Confidentiality: Protection of confidential information and trade secrets

13. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction for disputes

14. General Provisions: Standard clauses including force majeure, notices, and amendments

Optional Sections

1. Non-Competition: Restrictions on intermediary's activities with competitors, used when exclusivity is important

2. Intellectual Property: IP rights and usage terms, included when intermediary will handle branded materials or create new IP

3. Performance Targets: Specific KPIs and performance metrics, used when commission is tied to performance

4. Training and Support: Details of training provided by principal, included for complex products/services

5. Insurance: Insurance requirements, included when intermediary handles valuable goods or high-risk services

6. Data Protection: Specific data handling requirements, needed when personal data processing is involved

7. Marketing and Promotion: Guidelines for marketing activities, included when intermediary conducts promotional activities

8. Sub-contractors: Terms for engaging sub-contractors, used when sub-contracting is permitted

Suggested Schedules

1. Schedule 1 - Commission Rates: Detailed commission structure, rates for different products/services

2. Schedule 2 - Territory Description: Detailed description of geographic territory and any excluded areas

3. Schedule 3 - Products/Services: Complete list of products/services covered by the agreement

4. Schedule 4 - Reporting Templates: Standard formats for activity reports and commission calculations

5. Schedule 5 - Performance Metrics: Detailed KPIs and measurement criteria

6. Appendix A - Contact Details: Key contact information for both parties

7. Appendix B - Compliance Requirements: Specific regulatory and compliance requirements under UAE law

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions












































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Relevant Industries

Retail

Real Estate

Financial Services

Manufacturing

Technology

Consumer Goods

Professional Services

Healthcare

Construction

Automotive

Telecommunications

Import/Export

Energy

Hospitality

Relevant Teams

Legal

Sales

Business Development

Operations

Finance

Compliance

Commercial Operations

Partner Relations

Contract Administration

Regional Operations

Relevant Roles

Chief Executive Officer

Commercial Director

Sales Director

Business Development Manager

Legal Counsel

Contracts Manager

Sales Manager

Channel Manager

Partnership Manager

Operations Director

Compliance Officer

Finance Director

Regional Manager

Territory Manager

Agency Relations 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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