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Independent Sales Rep Agreement for United Arab Emirates

Independent Sales Rep Agreement Template for United Arab Emirates

A comprehensive legal agreement governed by UAE law that establishes and regulates the relationship between a company (principal) and an independent sales representative. The agreement defines the terms under which the representative will promote and sell the principal's products or services, including territory rights, commission structures, and performance expectations, while explicitly maintaining the representative's independent contractor status. It incorporates specific provisions to comply with UAE Commercial Agency Law and ensures clear differentiation from employment relationships under UAE Labor Law.

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Independent Sales Rep Agreement

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What is a Independent Sales Rep Agreement?

This Independent Sales Rep Agreement is designed for use in the United Arab Emirates when a company wishes to engage an independent sales representative to promote and sell its products or services without creating an employment relationship. The document is structured to comply with UAE federal laws, particularly the Commercial Agency Law (Federal Law No. 18 of 1981) and Commercial Transactions Law (Federal Law No. 18 of 1993), while explicitly avoiding creation of a registered commercial agency relationship unless intended. It covers essential elements such as territory definition, commission structures, performance expectations, and termination provisions, while including specific UAE legal requirements and cultural considerations. The agreement is particularly important for companies expanding their sales presence in the UAE market through independent representatives rather than direct employees.

What sections should be included in a Independent Sales Rep Agreement?

1. Parties: Identifies the principal company and the independent sales representative, including full legal names and addresses

2. Background: Sets out the context of the agreement and the independent nature of the relationship

3. Definitions: Defines key terms used throughout the agreement

4. Appointment and Territory: Specifies the appointment of the sales representative and their designated territory

5. Scope of Authority: Details what the sales representative can and cannot do on behalf of the principal

6. Independent Contractor Status: Explicitly establishes the independent nature of the relationship and disclaims employment status

7. Duties and Responsibilities: Outlines the specific duties and performance expectations of the sales representative

8. Commission and Payment Terms: Details the commission structure, calculation method, and payment terms

9. Intellectual Property Rights: Covers the use of trademarks, logos, and other IP owned by the principal

10. Confidentiality: Establishes obligations regarding confidential information

11. Non-Competition and Non-Solicitation: Sets out restrictions during and after the agreement term

12. Term and Termination: Specifies the duration and conditions for termination

13. Post-Termination Obligations: Outlines obligations and rights after agreement termination

14. Governing Law and Jurisdiction: Specifies UAE law as governing law and establishes jurisdiction

15. General Provisions: Includes standard boilerplate clauses like notices, amendments, and severability

What sections are optional to include in a Independent Sales Rep Agreement?

1. Performance Targets: Used when specific sales targets or KPIs need to be met

2. Training Requirements: Included when the principal provides mandatory training

3. Marketing and Advertising: Used when the rep has specific marketing responsibilities or restrictions

4. Inventory Requirements: Included if the rep needs to maintain sample inventory

5. Expense Reimbursement: Used when certain expenses are reimbursable by the principal

6. Insurance Requirements: Included when specific insurance coverage is required

7. Compliance with Anti-Bribery Laws: Added for international sales or government contracts

8. Sub-Representatives: Used when the rep is allowed to appoint sub-representatives

What schedules should be included in a Independent Sales Rep Agreement?

1. Schedule 1 - Territory Description: Detailed description of the geographic territory or market segment

2. Schedule 2 - Commission Structure: Detailed breakdown of commission rates and calculation methods

3. Schedule 3 - Products or Services: List of products or services the representative is authorized to sell

4. Schedule 4 - Sales Targets: Specific sales targets or quotas if applicable

5. Schedule 5 - Reporting Requirements: Templates and requirements for sales reports

6. Schedule 6 - Principal's Policies: Relevant company policies the representative must follow

7. Appendix A - Sales Documentation: Required forms and procedures for sales documentation

8. Appendix B - Brand Guidelines: Guidelines for using the principal's branding and marketing materials

Authors

Alex Denne

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

Document Type

Sales Agreement

Sector

Sales

Cost

Free to use
Relevant legal definitions


























































Clauses









































Relevant Industries

Manufacturing

Technology

Consumer Goods

Industrial Equipment

Medical Devices

Construction Materials

Automotive

Electronics

Telecommunications

Professional Services

Software

Fashion and Apparel

Building Materials

Chemical Products

Food and Beverage

Relevant Teams

Legal

Sales

Business Development

Commercial

Compliance

Finance

Operations

Channel Management

Contract Administration

Relevant Roles

Sales Director

Business Development Manager

Commercial Director

Legal Counsel

Contracts Manager

Sales Operations Manager

Regional Sales Manager

Channel Manager

Independent Sales Representative

Sales Agent

Territory Manager

Chief Commercial Officer

VP of Sales

Compliance Officer

General Counsel

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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