Qatar Trade Law No. 27/2006 Thursday, 14 July 2011 00:52

Provision 276

It is permissible for the agent to defer the implementation of the representation if he had no explicit instructions from his client on it until he receives these instructions.

However, if there is urgency in the implementation of the representation or the agent is authorized to work within the limits of what is useful and appropriate, the agent has to implement it as per the requirement of the client’s interest and after taking the necessary precautions.

Provision 277

The agent is not committed to insure the things which he possesses on behalf of the client, unless the client asks him to do so, or the nature of the thing or the custom requires the insurance.

Provision 278

The agent can pose himself as a second party in the transaction that was assigned to him to conclude only in the following circumstances:

A - If the client permitted the agent to do so.

B - If the client’s instructions about the deal were explicit and specific and carefully carried out by the agent.

C - If the transaction is related to a commodity which has a fixed price in the market and the agent purchased it for him or sold it to the client at that price.

In these cases the agent does not deserve a wage against the representation.

Provision 279

The agent shall be responsible for the damage to the objects possessed by him on the account of the client, until this damage resulted from an unknown reason without an intervention of the agent or the defects in these things or the damage caused to the things was by virtue of their nature.

Provision 280

If it appears to the agent that the travel caused the damage to the things which he received on the account of the client, he has to take urgent measures to keep them from worsening and reduce the damage. If the objects held by the agent on the account of the client are threatened by quick damage or subject to the risk of decline in value and the agent could not recourse to the client or he recourse to him, but he didn’t receive instructions at the suitable time, he must ask the court on an urgent basis, the permission to sell the objects in the manner to be designated by the court.

Provision 281

The agent shall provide the client instantly with the necessary information what he receives regarding the implementation of the agency and its account statement.

The account statement must be identical to the fact. If he deliberately included false statements, the client may refuse the transactions that are related to these data as well as he can use his right to claim the compensation. If he deliberately omitted some substantial data from the account statement, the client shall have the right to ask to include that data and claim the compensation.

The agent shall not deserve any wage for these transactions.

Provision 282

The agent shall have the privilege on the goods and other things sent to him by the client or deposited with him or delivered to him as soon as the goods were sent or deposited or delivered.

This privilege shall include the fee of the agent and all due amounts because of the agency, whether these amounts accrued prior to the delivery of the goods or things or while in possession of the agent. The privilege is determined without regard to whether the debt resulted from the work related to goods or things that are still in the possession of the agent or other goods or things that were earlier sent or deposited or delivered to him.

If the goods or things that come under the privilege are sold and delivered to the buyer, the privilege of the agent shall move to the price.

Provision 283

The agent shall not have the privilege on the goods or things sent or deposited or handed to him for safekeeping, only if they remained in his possession.

The goods or things shall be considered in the possession of the agent in the following circumstances:

1 - If they were put at his disposal in the customs, or in the general stores, or in his warehouses or he was transporting them by his means.

2 - If he possessed them before they arrived under a shipment document or any other document of transport.

3 - If the agent exports them and in spite of that he remains the possessor because of the document of shipment or any other document of transport.

Provision 284

The privilege of the agent is preferred to all other privileges other than judicial costs, legitimate expenses and whatever the government deserves including taxes, fees and other rights of any kind that have a privilege with the conditions prescribed in the applicable laws.

Provision 285

All the procedures of the implementation of the commercially mortgaged things, shall be followed while implementing the goods and objects in the possession of the agent to meet his rights

However, if the agent is in charge of the sale of the goods or things in his possession, he may implement the sale without the need to follow the procedures referred to, but if he faced difficulty in the implementation of the instructions of the client regarding the sale.

Provision 286

If the client doesn’t have a known home in Qatar, his agent’s home in the country shall be considered as home for the client. He can be prosecuted and notified with the official papers in the country, in respect of work carried out by the agent for him.

Provision 287

The commercial agency shall end with the completion of the work under the agency or upon the expiry of the specified term. The same shall also end with the death of the client or the agent or the loss of eligibility of any of them or bankruptcy of the agent.

Provision 288

It is not allowed to protest the expiry of the agency against the other in good faith, when he contracted with the agent without his knowledge upon the expiry of the agency.

Provision 289

With respect to the regulation of engagement in the commercial agency the laws and the resolutions related to that shall be applied.

Some types of commercial agency

1 - A. Contracts Agency and Contract Distribution

Provision 290

A contract agency is a contract under which the agent continuously in the specific activity seeks and negotiates the conclusion of the transactions for the benefit of the client for a fee. His task may include the conclusion of these transactions and their implementation on behalf of the client and on his account.

Provision 291

The contract of the contract agency must be recorded in writing. It must specify in particular, the limits of the agency, fees of the agent, area of ​​activity, duration of the contract if it is for a fixed term and the trademark of the commodity which is under the agency, if any.

Provision 292

The agent of the contracts shall exercise the works of his agency and manage his commercial activity independently and he shall alone bear the expenses for the management of his activity.

Provision 293

The client may not be assisted by more than one contracts agent in the same region with the same branch of activity.

Provision 294

If it is stipulated in the contract that the contracts agent shall assess the buildings of display or storage of goods or facilities for the maintenance or repair or he shall spend unusual amounts to be required to exercise the agency’s work, the term of the contract cannot be less than five years.

Provision 295

It is not allowed for the contracts agent to take the financial rights of the client, unless the client permits him to do so. In this case, the agent may not grant a reduction or term without a special permission.

The contracts agent may receive the requests for the execution of contracts that are concluded by him as well as the complaints about non-implementation of these contracts. He shall be representative of his client in the cases related to these contracts, which are filed by him or against him in the area of ​​activity of the agent.

Provision 296

The client is committed to pay the agreed wage to the agent. This wage may be a percentage of the value of the deal and this percentage shall be calculated on the basis of the sale price to the customer, unless otherwise agreed.

Provision 297

The contracts agent deserves the wage for the transactions that are accomplished or the ones which are not completed because of client’s act, unless the contract requires otherwise.

The agent also deserves the wage for the transactions entered into by the client directly or through others, in the area specified for the activity of agent, even if these transactions were not completed as a result of the pursuit of the latter, unless the parties expressly agree otherwise.

Provision 298

The client has to submit to the agent all the information and facilities necessary for the implementation of the agency. He has to provide him, in particular with the specifications of goods and models, drawings and samples and other data that will help him to promote and market the goods under the agency.

Provision 299

The contracts agent is committed to preserve the rights of the client. He has to take all necessary precautionary measures to preserve these rights. He must provide his client with data on the situation of the market in the area of ​​his activity. He is not allowed in the cases other than those authorized by law, to disclose the client’s secrets which are related to the implementation of the agency, even after the end of the contractual relationship.

Provision 300

To agency contracts are entered into for the joint interest of both parties, so it is not allowed for a client to terminate the contract without any fault of the agent, but he obliged to compensate the agent for the damage that caused as a result of isolation. Every agreement which is contrary to that shall be invalidated.

The agent is also committed to compensate the client for the damage that he met if he gave up the agency at an inappropriate time and without an acceptable excuse.

Provision 301

If the contract is for a fixed term and the client did not renew it at the end of its term he has to pay to the agent a fair compensation which shall be determined by the tribunal, even if there is agreement to the contrary.

In order to entitle to such compensation the following conditions must be met:

1 – The agent must have not made a mistake during the implementation of the contract.

2 - The activity of the agent has led to the apparent success in the promotion of goods or increasing the number of clients.

At the time of assessment of the compensation, the amount of damage suffered by the agent and what the client helped the agent in promoting the product and increasing the customers.