Contract Termination By Agreement for United Arab Emirates

Contract Termination By Agreement Template for United Arab Emirates

A comprehensive legal document governed by UAE law that formalizes the mutual agreement between parties to terminate an existing contract. This document outlines the terms and conditions of the termination, including the effective date, settlement of outstanding obligations, mutual releases, and post-termination responsibilities. It ensures compliance with UAE Civil Code requirements and provides clear mechanisms for concluding the business relationship while protecting both parties' interests. The agreement includes provisions for handling confidential information, property return, and any surviving obligations, all within the framework of UAE legal requirements.

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What is a Contract Termination By Agreement?

The Contract Termination By Agreement is essential when parties mutually decide to end their contractual relationship in the UAE. This document is particularly relevant when both parties wish to formally document their agreement to terminate their existing contractual obligations while ensuring compliance with UAE legal requirements, including the UAE Civil Code (Federal Law No. 5 of 1985). It becomes necessary when parties need to clearly define the terms of separation, settle outstanding matters, and establish post-termination obligations. The agreement typically includes provisions for financial settlements, confidentiality maintenance, property return, and mutual releases. It's crucial for businesses operating in UAE mainland or free zones to properly document contract terminations to prevent future disputes and ensure legal certainty.

What sections should be included in a Contract Termination By Agreement?

1. Parties: Identification of all parties to the original contract and this termination agreement

2. Background: Details of the original contract, its key terms, and the circumstances leading to this termination

3. Definitions: Definitions of key terms used in the termination agreement

4. Termination: Clear statement of mutual agreement to terminate and the effective date of termination

5. Settlement of Outstanding Obligations: Details of any pending payments, services, or deliverables that must be completed

6. Mutual Release: Release of parties from future obligations and mutual waiver of claims

7. Return of Property: Requirements for returning any physical or intellectual property

8. Confidentiality: Continuation of confidentiality obligations post-termination

9. Governing Law and Jurisdiction: Confirmation of UAE law application and jurisdiction

10. Execution: Signature blocks and execution requirements

What sections are optional to include in a Contract Termination By Agreement?

1. Transition Arrangements: Used when there's a need for a handover period or transition of services

2. Surviving Provisions: Include when specific clauses from the original agreement need to survive termination

3. Non-Compete and Non-Solicitation: Include when post-termination restrictions are required

4. Tax Considerations: Include when there are tax implications that need to be addressed

5. Public Announcements: Include for high-profile contracts or when public disclosure needs to be managed

6. Employee Matters: Include when termination affects employment relationships

7. Insurance and Indemnification: Include when ongoing liability coverage or indemnification is necessary

8. Dispute Resolution: Include when specific dispute resolution mechanisms are needed beyond standard court jurisdiction

What schedules should be included in a Contract Termination By Agreement?

1. Schedule of Outstanding Payments: Detailed list of all pending financial obligations and payment terms

2. Schedule of Assets for Return: Inventory of physical or digital assets to be returned by each party

3. Schedule of Ongoing Obligations: List of any obligations that survive the termination

4. Schedule of Released Claims: Specific details of claims being mutually released

5. Transition Plan: Detailed timeline and responsibilities for any transition period

6. Contact Details: List of key contacts for post-termination matters

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

Cancellation Letter

Sector

Sales

Cost

Free to use
Relevant legal definitions
Relevant Industries

Real Estate & Construction

Technology & Software

Financial Services

Manufacturing

Retail & Consumer Goods

Healthcare & Pharmaceuticals

Energy & Utilities

Transportation & Logistics

Professional Services

Hospitality & Tourism

Media & Entertainment

Education

Telecommunications

Relevant Teams

Legal

Procurement

Operations

Commercial

Risk & Compliance

Finance

Business Development

Contract Administration

Project Management

Supply Chain

Relevant Roles

Legal Counsel

Contract Manager

Chief Legal Officer

Business Development Manager

Operations Director

Procurement Manager

Project Manager

Commercial Director

Risk Manager

Compliance Officer

General Manager

CEO

CFO

Supply Chain Manager

Account 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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