Abstract:
Abstract
This study explored the sole agency as a system in which the role of the agent
is not restricted to attracting the costumers only, but also goes beyond to
make contracts with them on behalf of the principal based on the continuous
agency agreement. Sole agency is considered a quite modern legal system
where it may bring up some legal problems in terms of adaptation or its
resemblance to other legal systems. This study aimed to assess and develop
the system of sole agency in Yemen through identifying the existing
weaknesses and discussing the applicable treatments by comparing them to
the Islamic jurisprudence provisions and the legislations of some other
countries such as Sudan and Egypt.
Furthermore, the study investigated the essence of sole agency through
defining it, determining its characteristics, distinguishing it from other
systems, and highlighting its importance. Since sole agency has become one of
the commercial agreements widely and constructively spread, many
legislations has undertaken to regulate its substantive provisions and
procedural provisions with special rules. However, the Sudanese legislator has
not specified its substantive provisions with special rules which means that it
is subject to the general provisions of authorization although commercial
agency and business have their own nature. In other words, what may be
appropriate for the relations of civil nature doesn't have to be necessarily
appropriate for the relations of commercial nature, therefore, allotting the
same provisions for commercial agency and authorization should be
rethought, because the agent and the principal are professional traders while
the authorized person in regular civil case does it voluntarily and not
professionally.
The study also showed that the concept of sole agency is not existent in the
Islamic jurisprudence, however, Islamic jurisprudence is based on granting
favor to advantages over disadvantages. So you may find many deals
legitimized on this basis in Islamic jurisprudence. Since the commercial agency
is generally bringing benefits to people and it differs from regular
authorization only in its frame, Islamic jurists found commercial agency
generally legal although there are some differences in their opinions regarding
its details.
It was also clear that in practical situation there are two kinds of sole agency.
The first kind is represented by exclusive agency contracts where the principal
authorizes the agent exclusively in a specific geographic area in which the
agent practices his activity on behalf of the principal to promote the
principal's products and sell them in return of a certain payment. The second
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kind is represented by exclusive distribution. This latter kind is not considered
exclusive agency, because the agent sells the products he buys for his interest,
and therefore he bears marketing risks. In spite of that, most of sole agencies
are of the latter kind.
In addition, the study clarified the influences of sole agency through
mentioning the obligations of the involved parties, and the guarantees and
termination of agency. For instance, each party in commercial agency
agreements has the right to terminate the agreement at his own will, and this
doesn't comply with the professionalism of commercial agency nature.
Therefore, some legislations consider the sole agency as an agreement made
for the joint interests of the two parties. Subsequently, when terminating the
agreement, protective standards must be taken into account to ensure that
no party exploits his right of termination to harm the other. So, termination
has to be justified with a reasonable cause acknowledged by law and
commercial custom otherwise a compensation must be made to one party. In
some cases the entitlement to such a compensation raise many problems.
It was also apparent that there are many weaknesses in the substantive and
procedural provisions of sole agency, including restricting the regulation of
the agency practices to the foreign companies only and the unavailability of
sufficient protective laws for the sole agent. As a result, this hinders the
development of commercial agencies and impacts their contribution to the
national economy.
Finally, the study reach a number of results, including: the provisions of the
sole agency in the Yemeni law are generally consistent with the Islamic
jurisprudence provisions except the provisions related to the interests of
receivables of the principal from the day of requesting them, and the interests
of receivables of the agent paid for the implementation of the agency.
The study recommends that the substantive and procedural provisions of sole
agency should be generally revised in order not to be limited to foreign
agencies, and to ensure the development of commercial agency and the
activation of its role by: determining the necessary guarantees for the agent
to keep his rights, providing the suitable protection for the agent due to his
weakness in case of retirement, and acknowledging his right in compensation
regarding the factor of customers in any case of agency termination