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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 118110
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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I am a distributor in Egypt since 1975 fortune 500 american

Customer Question

I am a distributor in Egypt since 1975 for a fortune 500 american company, i was terminated for "strategic reason" and to be replaced by another distributor although i usually met the targets of the company. A yearly renewed contract always stated that i am a distributor. does this entitle my company to any kind of compensation. noting that we introduced the brand to the market and paid marketing expenses for the brand as well.
Submitted: 1 year ago.
Category: Business Law
Expert:  Richard - Bizlaw replied 1 year ago.

Hello, my name is ***** ***** I will try to help you. Please remember I just report or interpret the law, so the outcome may not be what you hoped for.

Are you asking whether you are due compensation under Egyptian law or American law? The answer will determine the type of expert you need.

Customer: replied 1 year ago.
All my communication and contracts comes from their branch in united arab emirates"dubai". So to answer your question, it will be according to Dubai laws.
Expert:  Richard - Bizlaw replied 1 year ago.

You will need an expert in the law of United Arab Emirates. I am in the U.S. I will opt out so do not respond to this email as that will only slow the process of getting the correct expert for you.

Expert:  Law Educator, Esq. replied 1 year ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
I am a DIFFERENT CONTRIBUTOR, can you please provide us a copy of your contract, because whether or not they can terminate you depends wholly on the wording of that contract.
Customer: replied 1 year ago.
Hi Sir,
As the business goes back to 1975, there has been lots of contracts, and there has been lots of years where contracts were not made, yet of course we have invoices from the company that proofs the business was ongoing through all this period.
I have attached the latest contract and another very important one from 1989, but this one was not from Dubai office, because at that time it didn't exist.
Also, I want you to know that i am exploring the idea of going after them in USA, we have been loyal distributor, we are the reason the brand is known in our market through our years of efforts and investments.
40 years of business relation must account for something (contract on their own) even if contracts say otherwise. they have never sold to anyone in Egypt market except us, and i am not looking to keep them, i am just looking for compensation after all these years
Please let me know your feedback on all the above
Expert:  Law Educator, Esq. replied 1 year ago.
Thank you for your reply.
Unfortunately, your contract stated that it ended December 2015 and does not have to be renewed. There is no provision in there to continue the contract and it is unlike an employment contract where they have to pay an employee severance upon termination, you were not an employee this is a commercial contract and no payment is due upon termination of the contract because the contract does not say they do.
In a commercial contract, even if you had been with them for 40 years, there is no provision or even law providing for severance upon terminating the contract, as heartbreaking as that is to you. There is just no law in Dubai or any even legal precedent for getting severance or payment for refusal to renew this contract.