It follows from the two above-mentioned articles that the legislature considered that the courts of the United Arab Emirates had jurisdiction to deal with disputes arising from the performance of commercial agent contracts between the agent and the principle and to affect any other agreement. This includes the arbitration agreement of the parties as long as the commercial agent contract is registered in the commercial register. Transnational agency contracts: what is the applicable law? Introduction Exclusive jurisdiction is intended to prevent a party from being able to bring an action in a jurisdiction other than that provided for in the jurisdiction clause. However, in the event of a dispute with your Italian representative or sponsor, for example, it is advisable to initiate proceedings as soon as possible, even if you have an explicit clause in your contract that provides for the exclusive jurisdiction of the courts of England and Wales. If you don`t, it`s possible that your opponent can first sue in Italian courts. If your opponent brought an action in Italy just before you started the proceedings in the English courts, the English courts should bring an action before them until the Italian courts have declared that they do not have jurisdiction. This adds another layer of legal fees and uncertainties that can be avoided by boarding first. Finally, the Court of Justice of the European Union (ecj) was asked to rule on a question referred for a preliminary ruling. Specifically, the referring court asked the ECJ whether the right retained by the parties to a commercial agent contract could be infringed by the court before which the dispute is pending in another Member State, in favour of the right of the court, the latter being considered binding in the legal order of that Member State. Home News Business law Law applicable to disputes arising from commercial agent contracts Mandatory rules cannot be modified or modified contractually. They shall apply without prejudice to the legal choice of a Contracting Party.
Certain provisions of Italian law relating to commercial agent contracts are expressly identified as mandatory rules that can only be amended in the interest and for the benefit of the agent, in order to protect the rights of the agent in his relationship with the client. In particular, the provisions relating to compensation due to an agent in the event of termination of a commercial agent contract shall be considered binding. In the light of Italian case-law and the opinion of legal experts on the applicability of the Italian mandatory rules laid down in the Convention, it could be argued that the mandatory provisions on compensation may apply to a commercial agent contract governed by a law other than Italian law where an Italian representative operates in Italian territory, provided that the provision of the Treaty and the foreign legislation applicable to it do not contain the same treatment in favour of the representative. Article 1751 of the Civil Code suggests that such provisions may be amended only in the interest and for the benefit of the agent. It provides that a commercial agent must be compensated by the contracting entity upon termination of the agent contract if: (i) the representative has attracted new customers or has significantly increased the volume of business with existing customers and the contracting authority continues to derive substantial benefits from its activities with those customers; and (ii) payment of the termination fee is fair in the circumstances, including with respect to the commission that the commercial agent has lost for transactions with such customers. . . .