For contracts, purchases or disputes and many other things in our lives that require an agent, it is rare that none of us need an agency.
In light of the urgent need for this and the sensitivity or importance of the matters entrusted to the agent, disputes arise for various reasons, some of which lead to abuse of the agency and transgression of its limits, and hence payment is necessary. There are some important points to note regarding this matter.
To begin with, Article (924) of the UAE Civil Code issued pursuant to Federal Decree No. (5) of 2005 and its amendments defines agency as an agreement under which the principal appoints another person in his place. Therefore, agency over an unknown person is not required and is also void if it is one which is not permitted by law.
There are two main types of agencies: public and private, which are determined by the powers granted to the agent. A principal's control over a particular matter or matters, such as the purchase of shares or the establishment of a company, is special. A general agency is one that is not related to a specific matter, although it is not absolute except for matters of management and security. For actions such as transfer of ownership, this should be included in the powers of the agent in the general agency document. .
Agency legally expires: Termination of the work entrusted to him, expiration of the specified period or death of the principal or loss of legal capacity, even if the right of a third party attaches to the agency, it also expires. Agent's death or loss of legal capacity.
According to the article mentioned in the Act, there are requisites for the validity of the agency, in which the client must have the right to dispose of what he has given to others. If he is a minor, he cannot do so. , because he had no right to dispose of himself in the first place.
The principle is that transactions concluded by the agent outside the limits of the agency are not executed unless with the permission of the principal or if the action is more advantageous to the latter.
One of the important points to realize is that the “agency” does not end upon revocation. Instead, the agent must be notified of this and informed that “the powers conferred on him under the power of attorney shall expire.” .” All acts and deeds subsisting from the revocation of the power of attorney and the agent's declaration of revocation are valid legal proceedings.
The agent's role in our affairs is essential and sensitive, so it is important to select him carefully and familiarize ourselves with our rights and obligations so that the interest is achieved without dispute.
Mohammed Naguib, Arbitrator and Legal Adviser
