Apr 09

The admissibility or non-receivability of direct sales by a client to Qatar depends in turn on the nature of the agency agreement he has entered into with his agent. For general commercial agencies governed by the Agency Act, the law provides that the agent has the right to enter against the client to collect their commission in accordance with their agreement when goods or goods have been imported into the territory for commercial purposes by the client. However, the law does not provide for a minimum commission, so the parties can theoretically accept a low commission rate between them for such circumstances. The combination of rules that has been discussed so far leads to an obvious question: what happens if Company Y wants to take over the services of an agent, but does not want to limit the distribution of its products or services to Company X? This is also a goal that is achieved by distinguishing Qatar between different categories of agency agreements. Although it is necessary, for certain categories, for the agent to be appointed exclusively, the employment of a commercial/commercial representative of Company Y grants an exemption not only from the duty of exclusivity, but also from the provisions of the commercial law in general. However, Company Y must be careful in the application for immunity – the prevention of exclusivity alone is not a sufficient reason to obtain an exemption. In addition, the Trade Act classifies several other subcategory of agents who must be registered to obtain the benefits of registration. These are “contract agencies,” “distribution contract agencies,” “commission representatives” and “sales/distributor representatives,” which are defined and regulated in commercial law. The commission on goods and services imported by commercial agents can be determined by the agency agreement.

Under Article 273 of the Code of Commerce, if there is no specific provision in the agency`s compensation agreement, it will be up to a judge to appoint a commission on the basis of evidence of commercial uses. If a third party includes products and services within the scope of the agency agreement that do not initially come from the client, the agent is entitled to a commission from that third party.

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