Final Settlement Agreement for United Arab Emirates

Final Settlement Agreement Template for United Arab Emirates

A comprehensive legal document governed by UAE law that formally documents the terms and conditions of a final settlement between parties to resolve disputes, claims, or outstanding matters. This agreement, structured in accordance with UAE Civil Code and related legislation, provides a binding framework for the complete resolution of disputes, including detailed settlement terms, mutual releases, and payment arrangements. The document incorporates specific UAE legal requirements for enforceability, including provisions for execution, notarization where required, and compliance with local procedural requirements.

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What is a Final Settlement Agreement?

A Final Settlement Agreement is a crucial legal instrument used in the United Arab Emirates to document the final resolution of disputes, claims, or outstanding matters between parties. This document is particularly relevant when parties seek to achieve a conclusive end to their disputes, whether arising from commercial transactions, employment relationships, construction projects, or other business dealings. The agreement must comply with UAE Federal Law No. 5 of 1985 (Civil Code) and related legislation, ensuring enforceability in UAE courts. It typically includes comprehensive settlement terms, payment provisions, mutual releases, and waivers, all structured to provide certainty and finality to the resolution. The document is especially important in the UAE business environment, where amicable settlement is culturally and legally encouraged, and can help avoid lengthy court proceedings.

What sections should be included in a Final Settlement Agreement?

1. Parties: Detailed identification of all parties to the agreement, including full legal names, addresses, and registration details for corporate entities

2. Background: Recitals setting out the context of the dispute or claims being settled, including reference to any existing agreements or disputes

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

4. Settlement Sum: Clear specification of the settlement amount, payment terms, method, and timing

5. Payment Terms: Detailed payment mechanics, including bank account details, currency, and any installment arrangements

6. Release and Waiver: Comprehensive release and waiver provisions, specifically drafted to be enforceable under UAE law

7. Confidentiality: Obligations regarding confidentiality of the settlement terms and related information

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

9. Entire Agreement: Confirmation that this agreement represents the entire understanding between the parties

10. Execution: Execution blocks compliant with UAE requirements, including space for signatures and company seals where required

What sections are optional to include in a Final Settlement Agreement?

1. Non-Admission of Liability: Optional clause stating that the settlement does not constitute admission of liability by any party

2. Tax Provisions: Required when settlement has tax implications or involves cross-border payments

3. Return of Property/Documents: Include when settlement requires exchange or return of property or documents

4. Non-Disparagement: Optional clause preventing parties from making negative statements about each other

5. Future Cooperation: Include when parties need to cooperate on ongoing matters post-settlement

6. Warranties and Representations: Optional additional warranties specific to the settlement context

7. Language: Required when agreement needs to be in dual language format

8. Severability: Optional clause addressing the severability of provisions if any become invalid

What schedules should be included in a Final Settlement Agreement?

1. Payment Schedule: Details of installment payments if applicable

2. List of Claims/Disputes: Comprehensive list of all claims or disputes being settled

3. Related Agreements: Copies or details of any related agreements being terminated or modified

4. Release Documents: Forms of any additional release documents to be executed

5. Corporate Authorizations: Copies of corporate authorizations and powers of attorney

6. Property/Asset Schedule: Details of any property or assets being transferred as part of settlement

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

Banking and Finance

Real Estate and Construction

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Relevant Teams

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Commercial

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Corporate Affairs

Executive Leadership

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Relevant Roles

Legal Director

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Chief Legal Officer

Compliance Officer

Contract Manager

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Chief Executive Officer

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Project Manager

Operations Manager

Business Development Manager

Claims Manager

Dispute Resolution 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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