Can a supplier restrict or prohibit e-commerce sales by its distributors? The United Arab Emirates Federal Law No. 31 of 2006 on Industrial Property, the Federal Law No. 5 of the United Arab Emirates of 1985 on Civil Transactions and the provisions of competition law contain rules on confidentiality. However, the absence of a uniform trade secret law means that there is some uncertainty as to the protection of these rights under UAE law. Courts in the United Arab Emirates will generally act to prevent one party`s confidential information from being used or disclosed by another party, particularly where the distribution agreement contains specific contractual provisions. A conciliation or mediation agreement in the context of commercial agent contracts which, in accordance with the Federal Law No. 18 of 1981 on Commercial Agencies is not applicable because contractual relations and disputes arising from such agreements fall under the exclusive jurisdiction of the federal courts of the United Arab Emirates (which apply the federal law of the United Arab Emirates). Contrary to the above, the arbitration clause is null and void if the signatory is not authorized by the Agencies Act or by the competent governmental authority, which means that the courts of the United Arab Emirates automatically inherit jurisdiction in the matter. Therefore, foreign companies should look for documents such as the distributor association protocol, derepuissance, business licenses or other relevant documents. International companies can also appoint Dubai lawyers to carry out careful diligence of the distributor and design the agreement to avoid future losses. In addition to the above, it is not necessary to translate the distribution contract into Arabic. Our Commercial Advisory Group is often asked to review a client`s standard form distribution agreement, and in this article we will highlight some of the most important issues that should be considered under such agreements under UAE law.
What will happen if the agency/distribution agreement is not registered? Article 3 of the Agencies Act provides that only commercial representation contracts registered with the EO are deemed valid. Federal Law No. 1. . .