Appellant:
Empressa Frati S. p. A.
Appellee:
Al-Reem Establishment for General Trade & Company Representation
Appeal:
A misunderstanding of the difference between a commercial agency contract and a national agency contract.
The legal principle issued by the Appellate Court is that the contract is a commercial agency contract whether or not it is registered in the Register of Commercial Agents. This is so because registration is not a requirement for a commercial agency contract but a requirement for practicing commercial agency work in the country.
Article 1 of Federal Law No. 18 for the year 1988 has defined a commercial agency power as representing the principal by an agent for distributing, selling, offering for sale or presenting a product or a service in the country in exchange for a commission or profit. The agency contract in question provides in Article 8 that the appellee undertakes to provide many services to the appellant in the country as detailed in paragraphs A to H. In Article 7 it provides that the appellee deserves a commission to be agreed upon for those services.
Likewise, Article 314(2) of the said law provides that foreign companies must not operate in the country except through an agent who is a national of the state and as long as the agent is committed to providing the services for the principal company in exchange for a commission or profit.
In view of all that, the appeal should be rejected
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