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Service Agency Agreement for United Arab Emirates

Service Agency Agreement Template for United Arab Emirates

A Service Agency Agreement governed by UAE law establishes a formal relationship between a foreign company (Principal) and a UAE-based agent for the provision of specific services within the UAE territory. This agreement is structured to comply with UAE Federal Law No. 18 of 1981 (Commercial Agency Law) and related regulations, outlining the rights, obligations, and responsibilities of both parties. The document covers essential elements including scope of services, territorial limits, compensation structure, duration, termination provisions, and compliance requirements specific to UAE commercial agency regulations.

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Service Agency Agreement

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What is a Service Agency Agreement?

The Service Agency Agreement is a crucial document for foreign companies seeking to establish or maintain a commercial presence in the United Arab Emirates. This agreement type is specifically designed to comply with UAE Federal Law No. 18 of 1981 (Commercial Agency Law) and related regulations, which govern commercial agency relationships in the UAE. It is commonly used when a foreign company needs to appoint a local UAE agent to represent their interests, provide specific services, or facilitate business operations within the UAE territory. The document typically includes detailed provisions on the scope of agency services, territorial restrictions, compensation mechanisms, compliance requirements, and termination procedures, all structured to align with UAE legal requirements and business practices.

What sections should be included in a Service Agency Agreement?

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

2. Background: Context of the agreement, relationship between parties, and purpose of the agency arrangement

3. Definitions: Defined terms used throughout the agreement

4. Appointment and Scope: Terms of agent appointment, territory, and scope of services

5. Duration and Renewal: Term of the agreement and renewal provisions

6. Agent's Obligations: Detailed responsibilities and duties of the agent

7. Principal's Obligations: Responsibilities and commitments of the principal

8. Compensation: Fee structure, commission rates, and payment terms

9. Confidentiality: Protection of confidential information and trade secrets

10. Non-Competition: Restrictions on competitive activities

11. Termination: Grounds and procedures for termination

12. Governing Law and Jurisdiction: UAE law as governing law and jurisdiction for disputes

13. Notices: Communication procedures between parties

14. General Provisions: Standard boilerplate clauses including severability, entire agreement, and amendments

What sections are optional to include in a Service Agency Agreement?

1. Intellectual Property Rights: Used when the agency involves licensing or use of trademarks, patents, or other IP

2. Performance Targets: Include when specific performance metrics are required

3. Training and Support: When principal provides specific training or support services

4. Insurance: Details of required insurance coverage, if applicable

5. Bank Guarantee: When financial security is required from the agent

6. Compliance with Laws: Specific compliance requirements beyond standard obligations

7. Force Majeure: Provisions for unforeseen circumstances affecting performance

8. Data Protection: When personal data processing is involved in the services

What schedules should be included in a Service Agency Agreement?

1. Schedule 1 - Services: Detailed description of services to be provided by the agent

2. Schedule 2 - Territory: Detailed description of geographical territory covered

3. Schedule 3 - Commission Structure: Detailed breakdown of commission calculations and payment terms

4. Schedule 4 - Performance Metrics: Specific KPIs and performance targets

5. Schedule 5 - Required Reports: Format and frequency of required reporting

6. Schedule 6 - Principal's Products/Services: List of products or services covered by the agreement

7. Appendix A - Power of Attorney: If specific legal powers are granted to the agent

8. Appendix B - Standard Operating Procedures: Detailed operational procedures and requirements

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

Agency Agreement

Cost

Free to use
Relevant legal definitions



































Clauses





































Relevant Industries

Manufacturing

Retail

Technology

Consumer Goods

Industrial Products

Automotive

Healthcare

Professional Services

Construction

Energy

Telecommunications

Financial Services

Hospitality

Real Estate

Transportation and Logistics

Relevant Teams

Legal

Commercial

Business Development

Operations

Compliance

Corporate Secretariat

Risk Management

International Business

Sales

Executive Leadership

Finance

Strategy

Relevant Roles

Chief Executive Officer

Managing Director

Commercial Director

Legal Counsel

Contracts Manager

Business Development Manager

Operations Director

Country Manager

Regional Director

Compliance Officer

General Manager

Sales Director

Corporate Secretary

Risk Manager

International Business 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, 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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