Can you Terminate your Commercial Agent?

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The expansion of multinational companies is always either through incorporating a subsidiary or associating with a local distributor or a commercial agent in any jurisdiction.

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UAE is a standout amid the most preferable alternative where international companies can either sign an agreement for distribution or enters into an arrangement with the commercial agent for subsequent augmentation. Federal Law Number 18 of 1981 concerning UAE Agency Law, as amended (the Agency Law) is the only legislation which governs the attributes pertaining to the Agency Agreement signed by the parties. It is inevitable for foreign nationals to determine the advantages and disadvantages prior to engaging in a commercial relationship. Thus, Corporate Lawyers in Dubai have simplified for the readers to understand the Agency Law of UAE prior to appointing or terminating a Commercial Agent in UAE.

A registered agent typically relishes the exclusivity in their jurisdiction. In addition, under the Agency Law, the agent is entitled to earn a commission on registering and selling the products thereof. Further, the Agent is also authorized to block the imports at the customs authority, should there be a disagreement between the parties. The foregoing rights are devised in such a way to safeguard the interest of the agent who might have devoted significant efforts to build a profitable market for the principal. Henceforth, the agents in UAE can utilize the Agency Law to prevent the principal from registering a replacement agent unless the compensation is paid. Despite the stringent provisions, the court, in certain cases, has overruled the demands of commercial agents for termination of the contract on the grounds of non-performance of the agency contract. Following is the landmark judgment of the Court of Cassation declining the compensation for termination on the failure of agents to prove unjustified termination.

Facts

In the recent case of Federal Supreme Court Case 811 of 2017 and Federal Supreme Court Case of 814 of 2017, principal terminated the commercial contract due to substandard performance of the agent; it was evident that he was in clear breach of the agency contract.

Two principals in 1980 appointed an agent in UAE, whereby they agreed to sell and provide services on three brands of product, first two brands for principal 1 and the third brand for the principal. However, post two decades, the principals were facing the issue as the agency failed to perform his obligations under the said contract. Despite continuous reminders and warnings, the agent continued to be in default. Accordingly, the principals sent the letter for termination of the contract, inclusive of a final notice period to abide by the obligations pursuant to the contract, failing of which the agreement will be terminated completely. The agent failed to resolve the issue amicably.

In accordance with the Agency Law, the Ministry of Economy (MOE) is empowered to terminate an agreement based on justified reasons for termination. Thus, the MOE cancelled the agreement relying on three letters of termination for each brand, and subsequently, the invoice for the outstanding guarantee was issued. Accordingly, three cases were registered before the civil court against both the principals to set aside the ministerial decision for termination and reinstatement of the agent, placing its reliance on Article 14 of the Agency Law. The foregoing provision states that a meeting should be convened within 60 days from the date of termination to address the rationale behind termination and to offer an opportunity for agent’s defence. Thus, failure to meet the pre-requisite of convening the meeting authorizes the court to strike down the ministerial decision of termination. However, to the utter shock of the agent, the court of the first instance rejected the claim and opined that MOE had fulfilled their duty basis the communication between the parties. Accordingly, the appeal was filed which ruled out the decision of Court of First Instance stating that although the meeting is a mere formality, it still exists to protect the agent. Principals filed an appeal to the Supreme Court, which upheld the decision of the Appeal Court. Post the decision of the MOE, the principals appointed new agents and subsequently the agency was registered.

Judgments and Appeals

A. Court of First Instance Judgment: Agent’s request to cancel the registration of a new agent

The Agent’s request to rescind the registration of new agent’s registration was rejected by the First Instance court, and accordingly, the Agent filed an appeal. Appeal court overruled the First Court’s judgment and declared the decision of the MOE null and void. However, the deregistration of the new agents was not approved by the Appeal Court as the same issue was not entertained by the First Court at the time of the judgment. Thus, the right to appeal is not granted.

The Agent approached the Supreme Court, and the matter was accordingly referred to the three experts, wherein, it was concluded by the experts that the Agent was in breach of the contract and thus, not entitled to the compensation. Even though the Agent won the judgment, the new agents were not deregistered. Accordingly, the request of the Agent to reinstate them in the register before the Execution court basis the invalidity of the MOE decision was rejected.

B. Compensation Claim (Part 1)

Upon finishing the foregoing case, the Agent filed three new cases against the principals for compensation of AED 600 million. The matter was referred to the expert who concluded the faulty actions of the agent which has caused significant losses to the principals. Thus, the Agents is not authorized to seek compensation. In accordance with the experts’ report, the case was rejected in all the three courts.

C. Compensation Claim (Part 2)

A decade post receiving the unfavourable judgment on the compensation claim, the Agent filed three new lawsuits, against the principals, the Ministry and the New Agents. Defences like res judicata, statutory limitation, and no standing to sue the new agents were raised by the principals. First Instance Court accepted principals’ defense and rejected the case against the ministry and the new agent. Subsequently, the case was rejected by the Court of Appeal and the Court of Cassation on the same grounds. Epilogue

As evident from the case history, the matter was referred to the panel of experts to determine the entitlement of compensation, however, which was rejected in all the cases. Accordingly, the Supreme Court opined that:

The agent failed to provide evidence supporting their claim for compensation or the damages suffered due to termination of the contract;
The agents have breached the contract by failing to adhere with the contractual obligations such as timely payments, declining sales which caused loses;
The aftermath of the foregoing case sets a precedent for further Principal-Agent relationship. The court confirmed that the agents would not be entitled to seek compensation for termination, should there be a non-performance of the contractual obligations by the agent, notwithstanding the protections granted to agents under the Agency Law. Foreign companies must before terminating their contract with Commercial Agents approach Lawyers in Dubai to analyse the consequences for the same.

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Self Hypnosis – 5 Tips to Chase Travel Anxiety Away and Go See the World

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A lot of people have travel anxiety or fear of traveling. This fear or phobia can be caused by several different factors. Some people just have this developed need to stay within their comfort zone, while some don’t like the idea of riding airplanes. Some have phobia from hotel rooms, while some are scared of picking up diseases in foreign lands. Whatever the cause of your travel anxiety is, it can seriously hamper the excitement and full pleasure you can get out of life.

There is a way to chase those travel blues away so you can finally go see the world.

1. Make all necessary preparations. Most people get scared of traveling because they are inherently scared of the unknown. They do not know what to expect or what to find where they’re going. One way of relieving such anxiety is by making all the necessary preparations long before you take the trip. This will create a sense of control, so you feel like you know exactly what to expect and that nothing can go wrong. You can have emergency contingency plans, such as an international credit card you can use in case you run out of cash.

2. Face your airplane phobia. If your fear is specifically directed at flying, you have to understand the fear. What are you afraid of? Are you claustrophobic or acrophobic? Do you get scared during turbulence? Do mechanical sounds bother you? Such fears are irrational, so you can counter them with rational data. According to statistics, there is no reason to fear air travel. Airlines also have strict safety measures on board. By educating yourself and listening closely to attendant instructions, you will feel more assured.

3. Seek therapy first. Before you leave, it will help to see a therapist. This can help you if you’ve tried other methods to relieve your fear and have failed. Your therapist can make you join a program and a support group that can help with your specific problem.

4. Medications. Some people also try medications that can help ease their anxiety. But be sure to have the medication approved by your therapist and ask about any possible side effects so you can ensure your own safety.

5. Meditation. If you prefer not to medicate, then you can just meditate. Meditation makes use of self hypnosis so you can calm your mind down. You can meditate on self hypnosis scripts designed to ease travel anxiety. Hypnosis scripts are available online, so you can invest in some subliminal MP3s. You can even bring it with you on your trip.

These hypnosis scripts can help convert your subconscious into a friend rather than an enemy. Instead of a subconscious that’s inherently scared of traveling, you will have a subconscious that’s confident in flying and trekking across the globe.

The only portal to the subconscious mind is through meditation with the use of hypnosis and subliminal messages. These are messages that are designed to train your mind not to be anxious or fearful of traveling.

How To Overcome Travel Anxiety

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Do you get uptight, fearful or scared when you consider traveling? Have you long ago even stopped considering traveling because you know you can’t do it? Is someone in your life upset with you because you “won’t” travel with them? Then you may be one the many people suffering from Travel Anxiety. In fact, you may even have a full-blown phobia of travel.

Sometimes these Travel Anxiety problems are generalized to any form of travel. This means that the person is unable to travel anywhere in any form of transportation. For others, the anxiety is more specific. By specific I mean that the individual can drive a car, ride a bus or train. But the thought of flying in an airplane brings terror into their mind and body. Others can drive a car anywhere but riding as a passenger generates a fear or phobic reaction that prevents them from going.

Here are some of the typical Travel Anxiety or phobia problems that clients present to me:

Fear of Flying. This client is someone who can use most any other form of travel but can’t get on an airplane. In the condition’s lesser form, the person has an extreme fear and requires medication or/and alcohol to tolerate the anxious feeling associated with flying in an airplane. The person may intellectually know that the plane will arrive safely. They know the statistics about auto vs air travel safety data. And in-spite of this knowledge, they remain incapacitated at the mere thought of flying.

Fear of Driving/Riding over Bridges. This client trembles at the thought of crossing a bridge either as a driver or passenger. Some people are a little better if they are the driver. Many people avoid bridges be simply staying home or driving substantially out of their way to take an alternate route or a smaller bridge.

Fear of Riding in Any Car Unless As The Driver. I’ve had a number of clients who can’t ride in the back seat of a car. They report feeling trapped and experience severe anxiety symptoms.
Note: There is a difference between a fear and a phobia. I will address this in another article as the explanation would make this particular article too long.

These fears and phobias are learned. They aren’t naturally hardwired into us at birth. Only two fears are hardwired into us at birth. These are fear of loud noises and fear of falling (This fear of falling is what many people experience today as fear of heights.). These are left over primitive “fight or flight responses” that were necessary to preserve our lives when our ancestors roamed the plains and highlands. These fear responses were necessary for survival. Knowing this can help us understand and break out of the thought patterns and behavioral responses associated with them. These really aren’t examples of pathology but a normal neurological response run amok.

The symptoms for all of these variations of Travel Anxieties have similarities. Clients report feeling agitated, nervous, stomach upset or even nausea and intense fear. The discomfort from these symptoms most often lead to avoidance. People don’t go places or do things that they might otherwise enjoy doing. Their quality of life diminishes. Further, they feel negatively about themselves and the downhill spiral gets worse and worse.

Sadly, this problem becomes worse over time. It doesn’t just go away on its own. It’s important to understand that when we accommodate an anxiety, we strengthen it. Let me put in another way. When we avoid the situation that causes the anxiety, we make the anxiety even worse next time, and the time after that, and the time after that. It just gets worse and worse and worse. Facing your fears is an overly simplistic solution, but it’s right on target. But good luck with that. Avoidance works so well that very few people will simply push through the anxiety.

So how do you overcome the problem? It’s all about the way you think and respond to the anxiety. Remember, the ‘anxiety’ is your neurology responding to a stimulus. It’s nothing more than that. You think primarily in pictures, or talking in your head. Start by remembering a time when you were totally confident. Not relaxed, but totally confident. It doesn’t need to be travel related. Think of this several times and get the confident state anchored really strong. Then, Feel that confidence as you watch yourself having already completed the travel task, when it’s all over and your safe and sound. That is to say, see the end of the flight or road trip (when it’s all over) and notice that you can hold onto the confident sensations as you do so. Do this several times. Then, watch yourself take the journey from beginning to end feeling the total confident sensations all the way through. Practice future trips over and over again. Your mind and body don’t know the difference between real and imagined rehearsal.

Most people report being “in” the feared experience when they have anxiety. In other words, they are “associated” into the experience. They see it through their own eyes as if they were experiencing it now. The other alternative is to watch yourself in the experience. This is also called a “dissociative” state. It is virtually impossible to have anxiety when we watch ourselves from afar, however far that might be. This is a useful tool. If you have suffered from a dissociative disorder in the past, it might be best to consult your clinician before utilizing this. Most of us won’t have a problem with it.

This is easier than you think to overcome. It’s even easier when you do it with a skilled clinician trained to help you overcome such a problem. Most people think it will take a long time to overcome. It can take a while, but only if you would like it to. Or, you can open your mind to the possibility that it could happen much more quickly.

I always ask my clients, “how long do you think it will take you to overcome this problem.” The reason for this is that I need to know my client’s own ideas as to how long it will take. Often, I need to honor their belief system and work within it before I can change it. Knowing a little about the other person’s “Model Of The World” can access me to a different level of understanding of the problem. If I don’t do this, we won’t get to where we want to get as easily as we want to get there. It’s as simple as that.

Knowing my client’s belief system however, can also allow me to offer the suggestion that we change it. Beliefs aren’t fixed and permanent. We have all changed belief systems numerous times in our life times.

Consider changing your beliefs or “Model Of The World” as well to make change happen more rapidly. Again, beliefs and models aren’t fixed. They were developed and new ones can just as easily replace them.

Learning to anchor a resourceful state, and strategically dissociate to build confidence and successfully rehearse will get you going more quickly than you ever dreamed possible. Seeing things from a new perspective is powerful and life changing.

5 Great Tips to Stop Travel Anxiety

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While most of us enjoy holidays and traveling, many find the associated travel anxiety tough to bear. Travel anxiety isn’t a disease but it is rather the fear of the unknown. Fear of travel is usually caused by several factors. Some people may worry about their house and pets when they are away while others might have had unpleasant traveling experiences during their previous trips. Others are afraid of flying. Some fret that the trip will turn out to be a disaster and worry about all of the details. All of these are examples of worries related to travel that can lead to varying degrees of uneasiness. Regardless of the causes or intensity of your anxiety, it can really compromise the pleasure and excitement of your trip.

Although, travel anxiety is common in both experienced and novice travelers, most travelers have positive traveling stories to tell. Probably, they learned how to manage their anxieties and have regained the joy of travel. It is not too late; you can also overcome travel anxiety by following a little advice. The following 5 tips to stop travel anxiety could prove invaluable to you in planning your next holiday.

5 Tips to Stop Travel Anxiety

1. Spend time making Preparations Prior To Your Trip

From past experiences, to think of the details and annoyances that bothers you about traveling. For example, you think that your house will be in a mess once you step out of the door hire a house cleaner to clean your home prior to your return. If flight travels frightens you, you can equip yourself with your iPod or your favorite book to keep you busy while you’re traveling. Simply make a list of those things you think you’ll require in your trip and those things you won’t want to be left running while you are away. The time spent organizing, planning and taking care of all the details well in advance will help to stop travel anxiety.

2. Don’t Procrastinate

Some people are well aware of their travel anxieties and they’ll often avoid taking care of the details; eg. booking a ticket, packing, etc. They will make excuses, avoid and procrastinate due to previous poor experiences with traveling. Just because you have travel anxiety doesn’t mean that avoidance will eradicate your fears. If you really want to take control over travel anxiety, get yourself involved in the action by preparing early and taking care of all necessary details. Keep in mind, travel fears are just made up fears and they are never real.

3. Learn How to Cope Up With Flight Phobia

For those people who worry about flying, you may wan to dig a little deeper to find the root of this fear. Get to know exactly what frightens you. Are you are acrophobic or claustrophobic? Perhaps the mechanical sounds bother you or air turbulence puts the fright into you. All of these fears are irrational meaning you can counter them with rationality. Airlines have strict safety measures on board. Once you are aboard, try to listen to attendant instructions to calm your nerves. Also, use anything that you like such as music to disrupt your thoughts while you are traveling.

4. Meditate

To effectively manage their travel anxiety, many individuals use meditation to gain control. Meditation makes use of a kind of self-hypnosis, so you can calm your nerves and mind down. Various self-hypnosis scripts designed specifically to ease travel anxiety can be found online. Meditate on these scripts and your mind will be at ease during your time of travel. The scripts are great tools of converting people’s subconscious minds into a friend rather than a foe. Instead of having a subconscious mind that is deep-seated in travel anxiety, you’ll have a subconscious mind that is confident and not frightened of flights.

5. Get rid of the Unknowns

Illuminate your travel shadows by doing a research prior to your trip of things you’ll expect to encounter once you’re at your destination. Apart from visiting various travel blogs, you can also use travel guides to become well-informed with your destination point. Go online and checkout your accommodation so you will know what to expect. Have your looked into travel from the airport to the hotel? What about meals and special dietary requirements? The little unknowns add up and will add to your travel anxiety.

Besides the 5 tips to strop travel anxiety strategies listed above also ensure that you maintain proper communication using Facebook, MySpace, etc. Keeping the communication channels open with loved ones back home will keep you connected.

Observing the 5 tips listed above is a great way to start you on the path of happy travels. Best of luck!

My name is Clancy Davies and I am the creator and author of the website, “Alleviate the Anxiety”. I have specialized in the field of education and personal growth for nearly 30 years and enjoy helping people solve their personal issues and reach their maximum potential.

While visiting ‘Alleviate the Anxiety’ you will find many interesting articles on a variety of topics including; anxiety, panic disorder, shyness, stress, fears and more. You will discover many tips, remedies and solutions to help you on your path to better health.