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Arbitration Clauses in Commercial Agency Agreements Are Null and Void

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image of Arab Law Quarterly

In an action filed by a local company which had been appointed as the commercial agent of a principal, the Abu Dhabi Court of Cassation held that according to the UAE Commercial Agency Law No. 18 of 1981 (as amended by Law No. 14 of 1988), the jurisdiction to adjudicate any dispute between an agent and its principal lies with the local court. The court further held that as this matter concerns public policy the parties may not agree otherwise.


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