Business Contract for United Arab Emirates

Business Contract Template for United Arab Emirates

A comprehensive legal document governed by UAE law that establishes and regulates commercial relationships between business entities operating within or from the United Arab Emirates. This contract incorporates essential elements required under UAE Civil Code and Commercial Transactions Law, ensuring compliance with local regulations while facilitating business operations. It includes detailed provisions for rights, obligations, performance standards, dispute resolution, and termination conditions, all structured to be enforceable under UAE jurisdiction and compatible with both civil law and Sharia principles where applicable.

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What is a Business Contract?

The Business Contract serves as a fundamental legal instrument for establishing commercial relationships in the United Arab Emirates. It is designed to comply with UAE Federal Law No. 5 of 1985 (Civil Code) and Federal Law No. 18 of 1993 (Commercial Transactions Law), making it suitable for both mainland and free zone operations. This document is essential when businesses need to formalize their commercial arrangements, whether for service provision, goods supply, distribution, or other business activities. The contract can be customized for various commercial purposes while maintaining core elements required under UAE law, including clear party identification, defined obligations, payment terms, and appropriate governing law clauses. It's particularly important that this Business Contract considers both English and Arabic language requirements, as Arabic would be the prevailing language in UAE courts.

What sections should be included in a Business Contract?

1. Parties: Detailed identification of the contracting parties, including full legal names, license numbers, and registered addresses as per UAE requirements

2. Background: Context of the business relationship and purpose of the agreement

3. Definitions: Definitions of key terms used throughout the agreement, ensuring clarity in both English and Arabic contexts

4. Scope of Agreement: Detailed description of the business arrangement, services, or goods being exchanged

5. Term and Commencement: Duration of the agreement and conditions for commencement

6. Financial Terms: Payment terms, amounts, currencies, and payment mechanisms

7. Obligations of First Party: Detailed responsibilities and commitments of the first party

8. Obligations of Second Party: Detailed responsibilities and commitments of the second party

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

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

11. Termination: Grounds and procedures for terminating the agreement

12. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction of UAE courts

13. Force Majeure: Events excusing performance under UAE law

14. Notices: Process and addresses for formal communications between parties

15. Execution: Signature blocks and execution formalities compliant with UAE requirements

What sections are optional to include in a Business Contract?

1. Intellectual Property Rights: Required when the agreement involves IP creation, licensing, or transfer

2. Non-Competition: Include when restricting parties from competing activities, subject to UAE competition law

3. Insurance: Required when specific insurance coverage needs to be maintained by either party

4. Assignment and Subcontracting: Include when rights to transfer obligations or subcontract need to be addressed

5. Change Control: Required for contracts where scope or specifications may need modification

6. Compliance with Laws: Include when specific regulatory compliance needs emphasis

7. Data Protection: Required when personal data processing is involved

8. Islamic Finance Compliance: Include when the transaction must comply with Sharia principles

9. Step-In Rights: Include for critical service contracts where one party may need to take over operations

10. Dispute Resolution: Include when specific arbitration or mediation procedures are preferred over court proceedings

What schedules should be included in a Business Contract?

1. Schedule 1 - Service Level Agreement: Detailed performance metrics and service levels

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

3. Schedule 3 - Specification of Goods/Services: Technical specifications or detailed service descriptions

4. Schedule 4 - Key Personnel: List of key personnel and their roles if relevant to the contract

5. Schedule 5 - Required Insurance Coverage: Detailed insurance requirements and minimum coverage levels

6. Schedule 6 - Form of Performance Bond: Template for any required performance bonds or bank guarantees

7. Schedule 7 - Approved Subcontractors: List of pre-approved subcontractors if applicable

8. Appendix A - Required Documents: Copies of trade licenses, authorizations, and other required documentation

9. Appendix B - Performance Reports: Templates for required performance reporting

10. Appendix C - Change Request Form: Standard form for requesting and documenting contract changes

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

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Retail

Manufacturing

Technology

Financial Services

Real Estate

Construction

Healthcare

Education

Hospitality

Transportation

Energy

Professional Services

Trading

Telecommunications

Media

Tourism

Logistics

Infrastructure

Relevant Teams

Legal

Commercial

Operations

Finance

Procurement

Compliance

Business Development

Risk Management

Sales

Project Management

Contract Administration

Corporate Governance

Relevant Roles

Chief Executive Officer

Managing Director

Legal Counsel

Contract Manager

Business Development Manager

Commercial Director

Operations Manager

Finance Director

Procurement Manager

Company Secretary

Compliance Officer

Project Manager

Sales Director

General Manager

Risk Manager

Chief Financial Officer

Industries
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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