Can the parties agree on a probationary period enabling the principal to cancel the contract without notice during such probationary period?
The UAE Commercial Agency Law does not provide for a probationary period like, e.g. the UAE Labour Law. Once the respective contract is registered, the provisions of UAE Commercial Agency Law are fully applicable. However, an indirect probationary period may be obtained by keeping the contract ineligible for registration. This can be achieved delaying the required certification and authentications of the signatures of the principal for the time of the agreed probationary period. It is also possible to sign an uncertified declaration of intent, to which the unsigned contract is attached as an annex. This declaration provides for the contract to be signed and registered following the end of the probationary period – provided the latter was satisfactorily completed. 3.
