opinions
Before someone entrusts it!
The general agency is a very important legal bond due to its effectiveness and its strong influence and consequences, as well as a common relationship between different parties, whether they are relatives or partners, and in some cases it may be a Trojan horse, which hides within it a deep evil, so it is necessary to be careful before assigning one of them Because overconfidence can be costly.
In light of the importance of this legal relationship, the UAE legislator has been keen to organize it in an ideal manner that guarantees the rights of all parties. According to the third paragraph of Article 927 of Law No. 5 of 1985 regarding civil transactions, the agency allows the agent to act on behalf of the principal absolutely, with the exception of actions that lead to Loss of the latter such as donation, gift and extravagance in what is not required.
In order to avoid the dangers surrounding the public agency and to prevent any means of exploiting it to achieve personal ends that harm the principal, the legislator did not release the agent’s hand in the funds of his principal. To more than that except for the benefit of his client, according to Article 931 of the Civil Transactions Law.
The agent has the right to delegate to another person what he is entrusted with if the principal authorizes him, but he remains responsible towards the latter for any mistake committed by the second agent and bears the responsibility for the instructions issued to him.
And we come to the repeated case related to someone exploiting the agency to sell himself the property of his client, and we must realize that this depends on the contract itself, as some agency contracts give the agent the authority to sell at any price he sees, whether for himself or for others.
But far from the exception, the legislator does not allow the agent to buy for himself what he has been entrusted with selling it, and he is not allowed to sell it to his origins (fathers), descendants (sons), his spouse, or to a party with whom the agent is dealt as spoils on the agent or pays a fine, except at a price that exceeds the price the same, or for the same price if the client authorizes him to sell to whomever he wants,
In all cases, the agent is obligated to provide his client with the necessary information about the outcome of the implementation of the agency, and to provide him with an account thereof, in accordance with Article 948 of the Civil Transactions Law.
In summary, in light of the seriousness of this contract, the UAE legislator was keen to restrict it so that the agent's hand in his client's money would not be released without taking responsibility for any action he makes, and to set frameworks for his legal prosecution to control this important relationship and guarantee the rights of its parties.
By virtue of our profession, we witness complex judicial disputes caused by overconfidence in a person who does not deserve it. The situation becomes more complicated, ugly and sensitive when the parties to the dispute are from one family;
A father and his son or a wife and husband or any of the relatives, so we must prefer safety and think carefully before taking this step.
* Arbitrator and legal advisor
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