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Exclusive Management Agreement for United Arab Emirates

Exclusive Management Agreement Template for United Arab Emirates

A comprehensive legal agreement governed by UAE law that establishes an exclusive management relationship between two parties, where one party is granted sole rights to manage specified assets, operations, or business activities on behalf of the other party. This document, compliant with UAE Civil and Commercial Codes, details the scope of management services, exclusivity terms, operational parameters, fee structures, and performance requirements while incorporating specific provisions required under UAE legislation, including commercial agency laws and local business practices.

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What is a Exclusive Management Agreement?

The Exclusive Management Agreement is a specialized contract used when a property owner, business owner, or asset holder wishes to delegate complete management authority to a professional management company or operator on an exclusive basis. This document type is particularly important in the UAE market, where management agreements are common in sectors such as real estate, hospitality, and retail. The agreement must comply with UAE federal and emirate-specific laws, including the UAE Civil Code, Commercial Code, and relevant sector-specific regulations. It typically includes detailed provisions for management scope, exclusivity terms, performance standards, fee structures, and operational controls, while addressing specific UAE requirements regarding commercial relationships and agency arrangements. The document is essential for establishing clear management rights, responsibilities, and performance expectations while protecting both parties' interests under UAE law.

What sections should be included in a Exclusive Management Agreement?

1. Parties: Identification of the parties entering into the agreement, including full legal names, registration details, and addresses

2. Background: Context of the agreement, brief description of the parties' businesses, and purpose of entering into the management arrangement

3. Definitions: Detailed definitions of key terms used throughout the agreement

4. Appointment and Scope: Terms of the manager's appointment, scope of services, and confirmation of exclusivity

5. Term and Renewal: Duration of the agreement, commencement date, and renewal provisions

6. Manager's Rights and Obligations: Detailed description of the manager's responsibilities, authority levels, and operational scope

7. Client's Obligations: Responsibilities and obligations of the client, including cooperation requirements and information provision

8. Exclusivity Provisions: Specific terms regarding the exclusive nature of the arrangement, territorial scope, and any limitations

9. Fees and Payment Terms: Management fees, payment structure, expenses, and payment terms

10. Performance Standards: Required service levels, KPIs, and quality standards

11. Reporting and Accountability: Reporting requirements, frequency, and accountability measures

12. Intellectual Property: Ownership and usage rights of intellectual property

13. Confidentiality: Confidentiality obligations and information handling requirements

14. Termination: Termination rights, notice periods, and consequences of termination

15. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction provisions

What sections are optional to include in a Exclusive Management Agreement?

1. Force Majeure: Provisions for unforeseen circumstances - recommended for longer-term agreements

2. Insurance: Insurance requirements and obligations - important if physical assets are involved

3. Non-Competition: Non-compete provisions - relevant when protecting business interests is crucial

4. Assignment and Subcontracting: Rights to assign or subcontract - important for larger operations

5. Staff and Employment: Provisions regarding employment and staffing - needed if management includes staff supervision

6. Compliance with Laws: Specific compliance obligations - important in regulated industries

7. Data Protection: Data handling and protection provisions - necessary if personal data is processed

8. Anti-Corruption: Anti-bribery and corruption provisions - important for international businesses

9. Change Control: Procedures for implementing changes - useful for complex management arrangements

What schedules should be included in a Exclusive Management Agreement?

1. Schedule 1 - Services Description: Detailed description of management services to be provided

2. Schedule 2 - Fee Structure: Detailed breakdown of fees, including calculation methods and examples

3. Schedule 3 - Key Performance Indicators: Specific performance metrics and measurement criteria

4. Schedule 4 - Reporting Requirements: Ƶ and specifications for required reports

5. Schedule 5 - Key Personnel: Details of key management team members and their roles

6. Schedule 6 - Operating Procedures: Detailed operational procedures and protocols

7. Appendix A - Power of Attorney: If required, formal authorization of management powers

8. Appendix B - Service Levels: Detailed service level specifications and remedies

9. Appendix C - Compliance Requirements: Specific regulatory and compliance requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Publisher

Ƶ

Cost

Free to use

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