Significant amendments to Oman’s Commercial Agencies Law become effective in July 2014 by Sultani Decree 34/2014
Sultani Decree 34/2014, effective from 21 July 2014, has brought in the most significant amendments to the Commercial Agencies Law (Sultani Decree 26/77) since amendments in 1996 allowing multiple agents to be appointed on a non-exclusive basis.
Prior to the amendments, article 10 of the Commercial Agencies Law, or CAL, gave important protections to Omani agents with regards to renewal and termination of agency agreements. In short, when a foreign principal terminated or did not renew an otherwise viable, profitable agency without showing a specific legal cause for doing so, the agent could proceed to the Oman court or arbitration to claim compensation for the loss of the agency. Article 10 has been repealed and so arguably the parties to commercial agency agreements are now free to decide the terms of renewal and termination of those agreements. However, this is subject to the retention of article 18 of the CAL. Article 18 states that the courts shall decide all matters and disputes between agents and principals regarding the agency contract and may decide on appropriate compensation depending on the commercial and local practices (unless the parties choose arbitration). It seems that the term ‘suitable compensation’, which used to be linked with article 10, will need to be interpreted differently. It leaves some uncertainty hanging over the repeal of article 10…
Click on the link below to read the rest of the Dentons briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from The Lawyer
Analysis from The Lawyer
Life in Canada is getting harder for firms as commodities prices fall and work volumes slow
Which firms are cutting it in this era of slimline rosters, and who are the GC new brooms making clean sweeps? The Lawyer can reveal all