Distribution agreements under Federal Act 5 of 1985 are governed by the principle of contractual freedom. Therefore, there are no legal restrictions on the legal and jurisdictional decision of the parties as to their distribution relationship. However, with respect to trade agency agreements concluded pursuant to LAE Federal Law No. 18 of 1981, the parties are required to apply their contractual relationships to the jurisdiction of the United Arab Emirates Federal Courts, which will apply the federal law of the UAE. The products subject to the agreement are explicitly identified and catalogued in the register of CEE agencies, in reference to the registered agreement. However, registered agreements often do not have the specificity required in their product description. As a result, generic generic words are then used in the CEE agency registry to describe products, which can confuse the scope of the registered agency. This ambiguity and, in many cases, the overall scope of the resulting registered agreement are often not what the parties intended to do when they entered into a contract. It can also create serious problems for contractors who wish to bring new product lines to market. Customs may seize products that fall within the scope of the registered agreements and are imported by parties other than the registered representative. Disputes may arise between the contracting entities and the agents who, whatever the outcome, harm the company in the country. Article 9 of the Agency Act provides for the payment of compensation to the agent in the event of termination or non-renewal of an agency contract.

As with section 8 termination, the exact calculation of compensation is not defined in agency law, but the setting of compensation premiums often takes into account common technology transfer agreements? The supplier may agree with the distributor that the distributor does not acquire ownership of the supplier`s intellectual property rights and that these rights remain the exclusive property of the supplier. This may include trademarks and patents. The agreement may also provide that if the agent acquired intellectual property rights in accordance with the distribution agreement, those rights would be irrevocably transferred to the supplier and that the agent would only use those rights to fulfill his obligations under the distribution contract.