DCC 148/2007

This case involved whether a case involving an unregistered commercial agency could be heard. Restrictions of hearing commercial agency disputes did not apply where the dispute involved a claim for expenses incurred and effort undertaken to promote the product.

Key Legal Questions

What a commercial agent can request as compensation for a loss of profit and effort he has made and expenses incurred in the success of an agency.

Whether not registering an agency prevents a case from being heard.

Background

A Plaintiff filed a suit against a Defendant requesting the payment of 20.000.000 AED and 12% interest rate per annum from the date of the lawsuit until full payment on the basis that he had signed an agency agreement with the Defendant, under which he was appointed an exclusive agent in order to promote and sell the company's products in the Emirate of Dubai. After much effort, he was notified that the agency was to be terminated on the grounds that a new branch was going to open in Dubai.

The Plaintiff asked for compensation for the effort he had made and expenses incurred as a result of the agency agreement.