Commercial agency & distribution agreements
Legal advice for principals, suppliers and distributors on market-entry contracts, exclusivity, commercial agency registration and the terms governing an orderly exit.
Discuss this matter
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Define the relationship behind access to a market
Appointing a distributor or commercial agent creates a continuing relationship with consequences for sales, customers and the brand. Territory, product range, authority to bind the supplier and the allocation of commercial risk deserve attention before an exclusivity commitment is made.
In the UAE, registration under the commercial agencies framework brings particular requirements. The legal position should be assessed from the arrangement and registration status, rather than its title alone. Cross-border agreements also need a coherent choice of law and dispute process.
How the firm can assist
Hyam El Hachem Law Firm can review or negotiate the agreement and assess its interaction with an existing commercial relationship. The mandate can cover a new appointment, renewal, change of distributor or a proposed termination.
- Define exclusivity, sales channels, performance targets and reporting rights.
- Allocate payment, warranty, stock, customer and after-sales obligations.
- Address renewal, notice, exit arrangements and any required regulatory coordination.
- Draft agreements and details of any existing registration.
- Territories, products, counterparties and intended sales channels.
- Correspondence, performance records and the proposed timetable.
An initial outline is enough. Detailed records can follow through a process agreed with the firm.
Questions clients often ask
Is every distribution agreement a registered commercial agency?
No. Registration status and the substance of the relationship require review. Do not assume that a standard distribution clause reproduces the rights or obligations of a registered agency.
Can an existing exclusive relationship be changed?
Potentially, but the current agreement, applicable law and any registration must be examined first. Notice, outstanding stock, customer arrangements and possible compensation all merit consideration.
Define the mandate
Clarify your objectives, the jurisdictions involved and any immediate deadline.
Review the legal position
Examine the relevant documents and identify the decisions requiring advice.
Agree the next steps
Set out the work, professional responsibilities and practical sequence.
Experience with a personal point of contact
Hyam El Hachem is an Attorney at Law with the Beirut Bar Association. Following her training at Awada Tyan Law Firm, she established her own firm in 1996 and expanded her practice to the UAE in 2005.
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