Spotlight on amendments to Commercial Agencies Law of Oman

In July, Oman's Commercial Agencies Law (“CAL”) was amended by virtue of a new law, Oman Sultani Decree No. 34/2014.

It is one of the most significant changes in Omani law in recent times.

The main significance of Oman Sultani Decree No. 34/2014 is that it has cancelled the previous Article 10 of CAL.

Article 10 was heavily relied upon by any Omani agent whose agency contract was governed by Omani law.

Put simply, Article 10 superseded any contractual provision to the contrary. A foreign principal could only terminate/not renew its Omani law agency contract without having to pay compensation if the registered Omani agent in question had materially breached the agency contract.