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Commercial Agency Agreement Qatar

The applicant took note of this and brought an action against the defendant. The applicant submitted that the defendant had unlawfully presented itself as the new distributor of the client`s products and that it had even exercised the role of distributor, when the applicant was in fact the sole registered sole representative of the client. The applicant relied only on the fact that he was still on the register as the sole representative of the client. As long as such a registration has remained in force, the applicant is the only party to have exclusive agency rights for the promotion of the market and the sale of the client`s products, regardless of the existing dispute over the expiry of the second agreement. The combination of rules that has been discussed so far leads to an obvious question: what happens if Company Y wants to take over the services of an agent, but does not want to limit the distribution of its products or services to Company X? This is also a goal that is achieved by distinguishing Qatar between different categories of agency agreements. While it is necessary for certain categories for the agent to be appointed exclusively, the employment of a commercial/commercial representative grants Company Y not only an exemption from the duty of exclusivity, but also provisions of commercial law in general. However, Company Y must be careful in the application for immunity – the prevention of exclusivity alone is not a sufficient reason to obtain an exemption. Despite a 2009 ruling by the Court of Cassation, that an agreement must contain three essential elements to be considered a valid agreement on commercial agencies (i.e. agency scope, exclusivity and remuneration), another 2013 Court of Cassation decides, conversely, that an agency agreement can continue to be considered existing regardless of the absence of any of these characteristics, so that it is vulnerable to commercial law. In Qatar, any trade agency agreement is governed by Qatar`s 2002 Federal Laws No. 8 (Trade Representatives Act), 27 of 2006 (commercial law) and civil law number 22 of 2004. Unlike many other legal systems, Qatar`s laws and codes confer rights on the agent and the main company. An agency agreement – in particular an agreement for Company X (an agent) to provide goods or services on behalf of Company Y (a client) – must be officially registered with the Ministry of Economy and Trade and then renewed every two years.

At the time of registration, the agreement has the effect of ensuring that X companies have exclusive rights to the goods or services it contains. In addition, a legal fee of 5% of the total value of goods or services received under section 5 of the Commercial Agents Act is automatically granted to Company X.