DCC 313/2009
Type
Case
Court
Dubai Court of Cassation
Jurisdiction
Dubai, Iraq, Iran, United Arab Emirates
Taxonomy
Agency
Copyright
LexisNexis
Decision date
10 May 2010
Catchwords
Commercial Agency – Agency – Contract - Agency agreement –Territorial restriction – Commission – Breach of Obligation
This case involved an agency agreement which covered a number of countries including the UAE and Iraq which should have been exclusive in those territories. Commission was due to the agent even when the sales had not happened within their territory.
Key Legal Questions Put Forth in Judgment:
The distribution of the goods and services shall be restricted to the agency area. Therefore, it is not permissible for the principal to give an agency to others in the same area or enter into deals with them or supply them with the same goods, products, manufactures or materials.
The agent is entitled to commission for deals made by the principal themself or through others in the area of agency, even if the deals are not concluded as a result of efforts by the agent.
Background Facts: