Agency Contract in Uganda

The agency contract in Uganda is governed by the Law of Contract (part X), where it is defined as the agreement according to which a person (agent), in the absence of any constraints, undertakes to promote and conclude purchases in a habitual manner and/or sales, as well as all other commercial transactions in the name and on behalf of a principal. The law does not provide for particular formalities for the validity of the agency contract, in fact the entire relationship is devolved to the contractual autonomy of the parties. It follows that the agency contract in Uganda can be drawn up in English or another language. In light of the intrinsic characteristics of the type of contract, such as flexibility and avoidance of formalities, the agency contract in Uganda represents the most widespread and used instrument for commercial purposes.
Unless otherwise agreed by the parties, the national law specifies the obligations and duties to which they are subject for the entire duration of the contractual relationship.
According to the Ugandan law, the agency contract, in the event of its dissolution, requires the contractors to predetermine an appropriate period of notice identified in relation to the duration of the contractual relationship. In the absence of compliance with the aforementioned notice, the agent has the right to fair compensation, as well as compensation for any damage suffered, if appropriately proven.
In general, the agency contract is terminated due to serious breach by the agent, or at the request of the same. In addition, extinguishing causes may include other circumstances not attributable to the principal, in particular determined by the agent's age or illness.
Uganda has ratified the 1958 New York Convention on International Arbitration, with the consequence that, within the contractual text, it is possible to insert a clause that provides for the competence of an arbitration judge to know and decide any disputes that may arise.
Furthermore, in Uganda there is the so-called Arbitration and Conciliation Act of 2000, that is a detailed regulation of arbitration, which therefore allows the parties to insert an arbitration clause within national and international contracts, or to avail themselves of it in the form of a separate and supplementary agreement contract stipulated between the parties. It is noted that pursuant to the provision, the arbitration agreement must submit the written form ad substantiam. The choice of law applicable to the contract may fall, at the discretion of the contracting parties, either on Ugandan or English law.