Contract And Release for United Arab Emirates

Contract And Release Template for United Arab Emirates

A Contract and Release agreement under UAE law is a legally binding document that combines contractual obligations with a mutual or unilateral release of claims between parties. This document is governed by the UAE Civil Code (Federal Law No. 5 of 1985) and must comply with UAE legal requirements for valid contracts and releases. It serves to document the terms of settlement, specify any ongoing obligations, and provide a comprehensive release of claims between the parties. The agreement typically includes provisions for consideration, acknowledgments of understanding, and specific terms regarding the scope of the release, all structured to be enforceable under UAE jurisdiction.

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What is a Contract And Release?

The Contract and Release agreement is a vital legal instrument in the United Arab Emirates business environment, commonly used to formalize settlements and terminate relationships while providing legal certainty to all parties involved. This document type combines elements of both a contract and a release, making it particularly useful in situations where parties wish to resolve existing disputes or cleanly conclude business relationships while establishing any continuing obligations. It must comply with UAE Civil Code requirements and often includes provisions for consideration, comprehensive releases, and specific acknowledgments. The agreement is frequently used in commercial disputes, employment separations, project completions, and business relationship terminations, providing a framework for parties to move forward with clarity about their rights and obligations.

What sections should be included in a Contract And Release?

1. Parties: Identification of all parties to the agreement with full legal names and addresses

2. Background: Context of the relationship between the parties and circumstances leading to this agreement

3. Definitions: Definitions of key terms used throughout the agreement

4. Release and Discharge: Core terms of the release, specifically what claims or rights are being released

5. Consideration: Details of the consideration being provided in exchange for the release

6. Acknowledgments: Parties' acknowledgments regarding understanding of rights, legal advice received, and voluntary nature of execution

7. Representations and Warranties: Statements of fact and promises made by each party

8. Payment Terms: Specific details about any payments, including timing and method

9. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction for disputes

10. Execution: Signature blocks and execution requirements

What sections are optional to include in a Contract And Release?

1. Confidentiality: Terms regarding confidentiality of the agreement and its terms, used when parties want to keep the settlement private

2. Non-Disparagement: Mutual obligations not to make negative statements about other parties, included when reputation protection is important

3. Ongoing Obligations: Any continuing obligations that survive the release, used when certain obligations need to continue

4. Tax Implications: Addressing responsibility for taxes arising from any payments, included when significant sums are involved

5. Future Cooperation: Terms regarding future cooperation between parties, used when ongoing interaction is necessary

6. Return of Property: Provisions for returning any property or documents, included when relevant to the settlement

7. Severability: Provision for maintaining validity of remaining terms if some are found invalid, included in complex agreements

What schedules should be included in a Contract And Release?

1. Schedule of Claims: Detailed list of all claims being released

2. Payment Schedule: Detailed breakdown of payment terms and installments if applicable

3. Related Agreements: List of any related agreements affected by or referenced in the release

4. Property Schedule: Inventory of any property to be returned or transferred

5. Required Formalities: List of any formal requirements for execution under UAE law

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

Release Agreement

Cost

Free to use
Relevant Industries

Construction

Real Estate

Financial Services

Technology

Healthcare

Manufacturing

Retail

Professional Services

Energy

Transportation

Education

Telecommunications

Hospitality

Relevant Teams

Legal

Human Resources

Executive Leadership

Risk and Compliance

Finance

Operations

Project Management

Business Development

Claims and Settlements

Contract Administration

Relevant Roles

Legal Counsel

Chief Legal Officer

Human Resources Director

Chief Executive Officer

Chief Financial Officer

Contract Manager

Project Manager

Risk Manager

Compliance Officer

Business Development Manager

Operations Director

General Manager

Settlement Officer

Claims Manager

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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