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Protection Provided By The Law

Commercial Agent Guide 
 

Federal Law No. (18) Of 1981 and the amending Law No. (14) Of 1988 provide required protection for the agent in case of any dispute incurred due to agreement implementation .Such protection is usually provided by the concerned authority (Ministry of Economy & Commerce) whether the dispute is arising with the principal himself or with any other party inside the country violating the provisions of the said law.
Then most important articles and provisions in the law that might enlighten the knowledge of the agent and enable him to protect his rights are as follows:

   
Article (3) of the law provided:
"Commercial Agencies activities shall not be exercised in the state save by those who have their names down in the Commercial Agents Register kept by the Ministry for the purpose. Any Commercial Agency not recorded in such register shall not be recognized nor shall any suit related thereto he filed with any court of Law."
 
Article (7) provided:
"An agent shall he entitled to commission on transactions concluded by the principals themselves or through others in the region assigned for the agent's activities, even though such transactions may not be reached as a result of the latter's efforts."
 
 
Article (8) of the law provided:
"It shall not be permissible for a principal to terminate nor to abstain from renewing an agency agreement unless there exists a reason justifying such termination or non-renewal. Re-registration of the agency in the Commercial Agent Register in the name of other agent shall not be permitted even though the previous agency lifetime is limited to a certain period in the agreement and, unless the original agency has been dissolved through - mutual consent of both agent and principal or, if there exist fundamental causes justifying termination or non- Renewal and convincing the Committee provided for in Article (27) hereof."
(The committee provided for in Article (27) is the Commercial Agencies Committee which comprises the Undersecretary of the Ministry of Economy & Commerce as Chairman; a representative from each municipality department in each Emirate to he nominated by Municipal Chairman; a representative for each board of directors of each Chamber of Commerce & Industry in each Emirate to be nominated by the Board Chairman; a representative from the Municipalities General Secretariat to be nominated by the respective board; and a representative from the Federation of UAE Chambers of Commerce & Industry to be nominated by the Board of Directors of the said Federation. The Committee's concerned with viewing any dispute arising from the agency agreement within sixty days from the date of complaint lodged to it.
    
Article (23) of the law provided:
"None shall be allowed to import in the State any commodities, products, manufactured goods, materials or any other merchandise being subject matter of a commercial agency registered at the Ministry in the name of others with the intention of dealing in them without prior consent of the agent. Customs Department shall not clear in such imports imported through someone other than the agent unless upon approval by the Ministry or the agent. Customs Department and the concerned authorities in the Emirates, each within the limits of its powers shall, upon request of the Ministry, have to detain those imports and store them in the warehouses of the port of the importer until a judgment on the dispute is reached.
 
However, the Chamber's member agent is advised to follow the following steps in case of any dispute incurred due to agreement implementation.

1-Lodge a complaint supported with documents presenting the subject matter of dispute to the concerned Ministry of Economy & Commerce, which acts immediately in order to prevent any further developments in the dispute, a matter which may, otherwise cause the agent further losses. Such immediate actions are taken by virtue of Law No. (18) Of 1981 and the amending Law No. (14) Of 1988 which authorized the Ministry for agency registration and activity follow-up.
2-Inform the Abu Dhabi Chamber of Commerce & Industry of the subject matter of complaint so as to contribute to finding amicable settlement for the dispute in coordination with the concerned ministry and in a bid to protect the rights of its members.
3-The Chamber's member agent should follow up the developments of contacts with the other disputed party established by the Ministry of Economy & Commerce. In case of failure to reach amicable settlement for the dispute, the agent may request the Ministry to broach the subject before the Commercial Agencies Committee, which as per the provision of article (27) of the Law, should view the dispute within sixty days from the date of request.