Business Agreement Contract for United Arab Emirates

Business Agreement Contract Template for United Arab Emirates

A comprehensive business agreement contract governed by UAE law, designed to establish and regulate commercial relationships between two or more business entities. This document adheres to UAE Federal Law No. 5 of 1985 (Civil Code) and Federal Law No. 18 of 1993 (Commercial Transactions Law), incorporating necessary provisions for commercial activities within the UAE jurisdiction. The agreement covers essential aspects including scope of business relationship, financial terms, obligations, dispute resolution mechanisms, and compliance with UAE regulatory requirements, while remaining adaptable to specific business needs and industry standards.

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What is a Business Agreement Contract?

The Business Agreement Contract serves as a fundamental legal instrument for establishing commercial relationships in the United Arab Emirates. This document is essential when two or more business entities wish to formalize their business relationship under UAE law, whether for ongoing services, specific projects, or long-term commercial partnerships. It incorporates crucial elements required by UAE Federal Laws, including the Civil Code and Commercial Transactions Law, while addressing specific free zone regulations where applicable. The agreement is particularly relevant for businesses operating in or expanding into the UAE market, requiring careful consideration of local legal requirements, business customs, and regulatory compliance. The document can be customized for various business relationships while maintaining its enforceability under UAE jurisdiction, making it a versatile tool for both local and international business operations.

What sections should be included in a Business Agreement Contract?

1. Parties: Detailed identification of all contracting parties, including full legal names, addresses, and registration details as per UAE requirements

2. Background: Context of the agreement and relationship between the parties, including any relevant history or previous agreements

3. Definitions: Comprehensive definitions of terms used throughout the agreement, ensuring clarity in both English and potential Arabic translation

4. Scope of Agreement: Detailed description of the business relationship, services, or goods covered by the agreement

5. Term and Commencement: Duration of the agreement, including start date, end date, and any renewal provisions

6. Financial Terms: Pricing, payment terms, invoicing procedures, and currency specifications

7. Obligations and Responsibilities: Detailed responsibilities and obligations of each party under the agreement

8. Representations and Warranties: Standard and specific warranties given by each party

9. Confidentiality: Provisions for protecting confidential information and trade secrets

10. Termination: Grounds for termination, notice requirements, and consequences of termination

11. Dispute Resolution: Process for resolving disputes, including jurisdiction choice and governing law provisions

12. Force Majeure: Provisions for unforeseen circumstances preventing contract performance

13. General Provisions: Standard legal provisions including notices, amendments, and severability

What sections are optional to include in a Business Agreement Contract?

1. Intellectual Property Rights: Required when the agreement involves creation, licensing, or use of intellectual property

2. Data Protection and Privacy: Necessary when personal data processing is involved, ensuring compliance with UAE data protection laws

3. Insurance Requirements: Include when specific insurance coverage is required from either party

4. Performance Metrics: Required when specific performance standards or KPIs need to be met

5. Compliance with Free Zone Regulations: Include when business operates within UAE free zones

6. Anti-Corruption and Sanctions: Important for international business relationships or government contracts

7. Environmental Compliance: Necessary for agreements involving environmental impacts or regulations

8. Staff and Subcontracting: Include when personnel or subcontracting arrangements are relevant

9. Change Control Procedure: Required for long-term agreements where scope changes are likely

What schedules should be included in a Business Agreement Contract?

1. Schedule 1: Service Level Agreement: Detailed performance metrics, service standards, and related penalties/rewards

2. Schedule 2: Pricing and Payment Terms: Detailed breakdown of pricing, payment schedules, and calculation methodologies

3. Schedule 3: Technical Specifications: Detailed technical requirements or specifications of products/services

4. Schedule 4: Key Personnel: List of key personnel from both parties responsible for contract execution

5. Schedule 5: Required Insurances: Specific insurance requirements and coverage levels

6. Schedule 6: Form of Notice: Template forms for various notices required under the agreement

7. Appendix A: Required Documentation: List of all required permits, licenses, and certificates

8. Appendix B: Contact Details: Detailed contact information for key representatives and notices

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Retail and Trading

Manufacturing

Professional Services

Technology and Digital Services

Construction and Real Estate

Healthcare and Pharmaceuticals

Financial Services

Logistics and Transportation

Energy and Utilities

Hospitality and Tourism

Media and Entertainment

Education and Training

Telecommunications

Consumer Goods

Relevant Teams

Legal

Commercial

Business Development

Operations

Finance

Procurement

Compliance

Risk Management

Corporate Governance

Strategy

Project Management

Executive Leadership

Relevant Roles

Chief Executive Officer

Managing Director

Legal Counsel

Business Development Manager

Commercial Director

Operations Manager

Procurement Manager

Contract Manager

Compliance Officer

Finance Director

Project Manager

General Manager

Company Secretary

Risk Manager

Department Head

Regional Director

Industries
UAE Federal Law No. 5 of 1985 (Civil Code): The foundational law governing contracts, obligations, and civil transactions in the UAE, including basic principles of contract formation, validity, and enforcement
UAE Federal Law No. 18 of 1993 (Commercial Transactions Law): Regulates commercial transactions and business dealings between merchants, including provisions for commercial contracts and obligations
UAE Federal Law No. 2 of 2015 (Commercial Companies Law): Governs the establishment and operation of companies in the UAE, including provisions for business relationships and corporate governance
UAE Federal Law No. 1 of 2006 (Electronic Commerce Law): Regulates electronic transactions and digital signatures, important for modern business agreements conducted electronically
UAE Federal Law No. 8 of 1980 (Labor Law): Relevant if the business agreement involves employment relationships or service provisions through personnel
UAE Federal Law No. 19 of 2018 (Foreign Direct Investment Law): Important for business agreements involving foreign investors or international business relationships
UAE Federal Law No. 4 of 2012 (Competition Law): Ensures business agreements comply with anti-competition regulations and fair business practices
UAE Federal Law No. 24 of 2006 (Consumer Protection Law): Relevant if the business agreement involves providing goods or services to consumers
Free Zone Regulations: Specific regulations applicable if the business operates within any of the UAE's free zones, which may have their own legal requirements and procedures
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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