أسئلة وأجوبة
We performed services as the official channel partner for a free zone that did not pay our commission. What to do?
Hello everyone,
I’m seeking professional legal opinions regarding an ongoing dispute we are facing with a free zone authority in the UAE.
We are an official channel partner for the Free Zone and have generated several clients and successful business registrations through our efforts.
Despite fulfilling our responsibilities as per the agreement, the Free Zone has not released our due commission.
It's been several months now, and we've experienced repeated delays, vague justifications, and non-committal responses from their end. It appears they are intentionally using delaying tactics.
We are exploring our legal options now and would appreciate guidance on the following:
What legal steps can be taken in such a case in the UAE?
Is this considered a breach of contract or unfair commercial practice?
Would it be advisable to send a legal notice first, or directly approach the relevant dispute resolution authority?
Dear client,
We can send them a legal notice through the court first, and in case they do not pay you within a week, then we must file a civil case at the court.
According to UAE law, failure to pay the due commission despite fulfilling the contract is considered breach of contract and could also be categorized as unfair commercial practice.
It is advisable to first send a formal legal notice to the relevant authority, and if there is no response, you can approach the Commercial Disputes Resolution Committee or the competent court, depending on the free zone.
Our legal center specializes in corporate and commercial disputes, and you can contact us via WhatsApp for detailed legal advice and to follow up on the procedures.
Dear S.,
Thank you for your inquiry regarding the commission dispute with the Free Zone authority. Below are the key steps you can take:
Legal Steps to Consider:
Breach of Contract Claim:
The Free Zone’s failure to release your commission is likely a breach of contract, entitling you to seek payment, damages, or specific performance.
Send a Legal Notice:
Initially, send a formal legal notice outlining the breach, the owed amount, and a clear deadline (usually 10-15 days) for resolution.
Dispute Resolution or Arbitration:
If the notice doesn’t resolve the issue, approach the Free Zone’s dispute resolution body or arbitration mechanism, which is often faster and cost-effective.
Civil Litigation:
If the matter remains unresolved, you may need to consider litigation in the UAE civil courts, supported by your contract and proof of unpaid commission.
Breach of Contract vs. Unfair Commercial Practice:
Breach of Contract: Likely the more straightforward route, based on failure to pay as per the agreement.
Unfair Commercial Practice: May apply if there’s intentional delay or obstruction, but requires evidence of bad faith.
Recommended Approach:
Send a Legal Notice first to urge resolution.
If unresolved, escalate to dispute resolution or arbitration.
Litigation should be a last resort.
Please gather all relevant documentation to support your claim, and let me know if you’d like assistance in proceeding with the legal notice or further steps.
Kind regards,
Mohammed Salah
Legal Consultant
Based on your description, the Free Zone's actions likely constitute both a breach of contract and potentially unfair commercial practice.
If your agreement clearly outlines the commission structure, the conditions for earning commission (which you have fulfilled by generating clients and successful registrations), and the payment timelines, the Free Zone's failure to pay without legitimate justification is a direct violation of the terms of your agreement.
This constitutes a breach of contract. Sending a legal notice first is highly advisable and is generally the standard first step in commercial disputes in the UAE.
If you need further assistance, kindly share your WhatsApp number.
Dear Inquirer,
Thank you for your message.
Based on the information provided, the Free Zone's failure to release your commission despite fulfilling your contractual obligations may constitute a breach of contract and could also be considered unfair commercial practice under UAE law.
The recommended first step is to issue a formal legal notice demanding payment and outlining the breach.
If this fails to resolve the matter, you may proceed with filing a case before the relevant dispute resolution forum—this may vary depending on the Free Zone’s jurisdiction and any dispute resolution clause in your agreement.
To assess the best course of action and initiate the process effectively, we recommend booking a consultation or formally appointing Future Vision for Advocacy and Legal Consultancy to represent you.
We are happy at Future Vision Law Advocates and Legal Consultancy to assist you and provide the best legal services that meet your needs.
To contact us, you can call or WhatsApp us.
In the event of late payment, it is best to initiate formal communication with the Free Zone Authority via a legal notice.
This notice demonstrates your seriousness in claiming your rights and can help expedite the process.
The legal notice includes a formal request for the contractual obligation to be fulfilled, specifying an appropriate timeframe, for example, 15 days from the date of the notice.
If the obligation is not fulfilled, you can pursue other legal proceedings.
Dispute Resolution Procedures: If your initial attempts at dispute resolution are unsuccessful, you can approach the competent authority for settling commercial disputes, such as the UAE courts or an arbitration body accredited by the Free Zone.
If the agreement includes a clause referring the dispute to arbitration or court, the procedure specified in the contract must be followed.
If the Free Zone fails to adhere to the contract or repeatedly delays payment, you may be in a strong position to file a lawsuit.
Arbitration or Filing a Lawsuit: If an amicable settlement fails, you can approach a competent court or resort to commercial arbitration in accordance with the terms of the contract or UAE laws.
The Commercial Court or the Enforcement Court may be the venue where you can file a lawsuit to claim the due commission, depending on the terms of the contract.
Unfair Commercial Practice or Breach of Contract: If the Authority delays payment without legal justification or based on frivolous justifications, this may be considered a breach of contract or an unfair commercial practice.
If the non-payment impacts your business or causes you damages, you may be entitled to compensation for these damages under applicable commercial laws.
For assistance, please contact us by phone or WhatsApp.
The channel partner has several legal steps available in the UAE to address the dispute with the Free Zone authority.
The situation appears to involve a breach of contract and potentially unfair commercial practices.
Sending a legal notice is a recommended initial step, followed by exploration of ADR methods, arbitration, or court action as necessary.
It is crucial to seek the advice of a legal professional familiar with UAE law to navigate these options effectively.
Please contact us by phone or via email.
Hello,
As per your query, please note that if there is a breach of contract, then you can send a legal notice and claim your money by filing a commercial suit for claim and compensation, as per the terms of the agreement.
Please contact us by email or call.
