Commercial Agency Agreement Qatar

The ruling set a precedent in Qatar that changed the legal concept of the Commercial Agency and the practice of registering commercial agent contracts with the Ministry of Economy and Trade. The trial department of Al Tamimi & Co. in collaboration with Mohammed Al Marri won this verdict for the client, a large foreign company. In addition, the Trade Act classifies several other subcategories of commercial agents who must be registered to obtain the benefits of registration. These are “contract agencies”, “distribution contract agencies”, Commission agents and “commercial and commercial representatives”, each of which is defined and regulated by the Trade Act. If the agreement provides for arbitration, Qatar is a signatory to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards and, as such, Qatari courts are likely to allow such disputes to be settled through arbitration. Only fixed-term contracts can be legally terminated. Notwithstanding termination and the contrary provisions of a registered agency contract, registered representatives have the right to claim damages in the event of termination, even if such termination is carried out in accordance with the terms of the contract itself. The legal right to compensation upon expiry or termination of the commercial agent contract is governed by Articles 8 and 9 of the Commercial Agents Act and is subject to obvious success in marketing the client`s products or an increase in the number of customers.