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16 January 2021

02 Jumaadaa al-Aakhirah 1442

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Law No. 27 of 2006 Promulgating the Trading Regulation Law

Law Summary Record Type: LawNumber: 27Date: 27/07/2006 Corresponding to 02/07/1427 HijriNumber of Articles: 849Status: In force

Official Gazette :Issue: 10Offcial Journal Issue Publication Date: 13/11/2006 Corresponding to 22/10/1427 HijriPage from: 281

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Section Name

c) Trade Representative

318 Article

A trade representative is a person who has been commissioned by a trader under a contract of employment to carry out on his behalf work related to his trade, whether travelling, in the trader's premises or anywhere else.

319 Article

A trader shall be responsible for the deals and contracts concluded by his trade representative within the limits of authority given to him.

The trade representative may be authorized by several traders who shall share responsibility when there is recourse to the trader regarding the actions of subordinates.

Where the trade representative is authorized by a company, the company shall be responsible for the trade representative work.

320 Article

Where the limits of authorization have not been specified for a trade representative, the authorization shall be deemed to include all transactions relating to the type of trade that he has been authorized to conduct.

A trader shall not plead against a third party contracting with the trade representative by limiting the authorization, unless he proves the knowledge of the third party of such limitation.

321 Article

A trade representative shall conduct the business which has been authorized in the name of the trader who authorized him. The trade representative shall give at the time of signing, the trader's full name together with his own full name and his status as trade representative; otherwise he shall be personally responsible for his actions.

However, the third party in this case may have recourse against the trader directly, if the transactions carried out by the representative were done on behalf of the trader and were related to the kind of trade he is authorized to do.

322 Article

A trade representative shall represent the trader in lawsuits arising from transactions carried out by him.
323 Article

A trade representative may not conduct business on his own account or that of a third party, without obtaining the clear consent of the trader he represents.

324 Article

A travelling sales representative may not claim the price of goods which he has not sold. He also may not reduce their price or defer payment of the same. The travelling sales representative shall accept the requests of others in the name of the person whom he represents and shall take the requisite measures to safeguard the rights of the said person.

325 Article

A trader may authorize some of his employees to make sales in his store. He can take the sale price inside the store, unless pay is owed to the cashier. The sales receipts in the store shall be evidence for the trader. The price may be required outside the store if the employees have been so authorized in writing by the trader.

326 Article

The trade representative shall be liable jointly with the trader for the observance of the legal provisions related to the unfair competition.