Agency Agreement Oman
In recent times, it has become difficult for local agents to obtain compensation for non-renewal or termination. Since Oman joined the WTO in 2000, the policy, environment and interpretation of the CAL by the courts have changed. Courts are reluctant to award substantial damages for non-renewal or termination of agency agreements, even if they have important cases. Talal Abu-Ghazaleh Legal Commercial Agency in the Sultanate of Oman What is the definition of the commercial agent? Trade agencies are subject to commercial law, as governed by Royal Decree 55/90, the commercial Agencies Law Issued by the Royal Decree No. 26/77, amended by Royal Decree 82/84 and Royal Decree No. 73/96 and the Trade Register Act, adopted by Royal Decree 3/74, as amended by Royal Decree 88/86. According to the Commercial Agencies Law, the commercial agency is defined as: any agreement by which a merchant or trading company of the sultanate is responsible for promoting or distributing the products or services of a foreign person or entity for a profit or commission. How can I register an agency? An agency agreement must be registered with the Department of Commerce and Industry to be enforceable and the ministry issues a certificate of proof of the recorder within 15 days of the application date. If a foreign contractor has terminated or has not extended an otherwise viable and viable agency, without giving a concrete legal reason, the representative could seek compensation for the loss of the Agency under Article 10 DU 20.00.2002. Article 10 B) cal) refers to an abuse of rights requiring payment of compensation, “the refusal of the client to renew a contract of commercial agencies when the agent provides evidence that his commercial activity has clearly resulted in the distribution and promotion of the client`s products.” Since the agent was unable to prove the agent`s fault, section 10 of the CAL constituted a legal obligation for the client to renew the commercial agency or to pay “appropriate compensation” to the agent. UAE Commercial Agency Law – A Detailed Insight An agency agreement is a legal contract that creates a fiduciary relationship between two parties, the first party (the client) consents to the… Commercial law (Decree Sultani 26/1977, CAL) was adopted to provide foreign contractors with a means of selling goods and services to Oman without a local presence, while protecting the investments of Omani agents. Prior to the changes, the CAL protected Omani agents with respect to the extension and termination of agency contracts.
The most common form of activity in Gulf Cooperation Council (GCC) countries for foreign companies is the appointment of a local agent (agent). This actually means entering into a contract with the citizen (individual or entity belonging to citizens or citizens) of that country. This legal relationship allows foreign contractors to market their products in the region where local market know-how is useful and desirable. The agent assists the foreign customer in distributing and providing marketing, distribution and after-sales services for the imported product line. Trade agencies for indigenous peoples are a lucrative activity and, therefore, the regulation of these activities is essential for oil-rich monarchies, where foreign companies can exploit resources and control trade in the region. Agent-friendly regulations are still in effect throughout the GCC, but recent changes in the laws of trade agencies in Oman-Kuwait represent a different approach, and in this article we will discuss the Commercial Agency Law in Oman. The repeal of Article 10 of the CAL by Sultani Decree 34/2014 reflects this WTO-inspired policy change. With the repeal of Article 10, parties to commercial agency contracts are now free to decide the terms of the extension and termination of these agreements.