Affidavit Of Cancellation With No Financial Obligation Template for the United Arab Emirates

An Affidavit of Cancellation with No Financial Obligation is a sworn legal declaration that formally terminates contractual relationships in the United Arab Emirates while confirming that neither party owes any money or other financial obligations to the other. This document provides crucial legal protection and clarity when you need to end business relationships, partnerships, or other contractual arrangements cleanly and definitively.

When do you need this document?

You will typically need this affidavit when dissolving business partnerships where all financial matters have been settled, terminating service agreements or contracts that have been fully performed, cancelling real estate transactions where deposits have been returned, or ending employment contracts where all compensation has been paid. The document is also essential when closing down business ventures, cancelling investment agreements, or terminating supplier relationships where all invoices have been settled. Banks, government authorities, and other institutions often require this affidavit as proof of clean contract termination before processing account closures, license cancellations, or other administrative procedures.

Key legal considerations

The affidavit must contain specific elements to be legally effective under UAE law. You must include accurate identification of all parties involved, precise details of the original contract being cancelled including dates and reference numbers, and an explicit declaration that no financial obligations remain outstanding. The document requires your sworn statement that you have the legal authority to make this cancellation and that you understand the legal consequences of your declaration. Any false statements in the affidavit can result in serious legal penalties including perjury charges. You should ensure all parties to the original contract consent to the cancellation unless you have unilateral termination rights under the original agreement. Consider obtaining legal advice if the cancelled contract involved significant value or complex terms.

Legal requirements in United Arab Emirates

Under UAE Federal Law No. 4 of 2013, your affidavit must be notarized by a licensed UAE notary public to be legally valid. The UAE Civil Transactions Law requires that contract terminations be properly documented and evidenced, making this affidavit essential for legal compliance. You must present valid Emirates ID and supporting documentation of the original contract when executing the affidavit. The notary will verify your identity and ensure you understand the contents before administering the oath. UAE courts recognize properly executed affidavits as strong evidence in legal proceedings, so accuracy is crucial. The document should be prepared in Arabic or accompanied by certified Arabic translation if originally drafted in another language. Keep multiple certified copies as various government departments, banks, and other institutions may require original notarized versions for their records.