Financial Agreement Between Two Parties for United Arab Emirates

Financial Agreement Between Two Parties Template for United Arab Emirates

A comprehensive financial agreement template designed for use in the United Arab Emirates, compliant with UAE Federal Laws and regulations, including the UAE Civil Code and Commercial Transactions Law. This document establishes the terms and conditions for financial arrangements between two contracting parties, incorporating necessary provisions for payment terms, security arrangements, compliance requirements, and dispute resolution mechanisms. The agreement is structured to accommodate both conventional and Islamic finance principles where applicable, and includes specific considerations for UAE jurisdiction, including DIFC and ADGM requirements where relevant.

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What is a Financial Agreement Between Two Parties?

This Financial Agreement Between Two Parties is specifically designed for use in the United Arab Emirates business environment, providing a robust framework for financial arrangements between contracting entities. The document is particularly relevant when parties need to establish clear terms for financial obligations, whether for lending, investment, payment structures, or other financial arrangements. It incorporates key requirements under UAE Federal Law No. 5 of 1985 (Civil Code) and Federal Law No. 18 of 1993 (Commercial Transactions Law), while also considering Central Bank regulations and Islamic finance principles where applicable. The agreement is adaptable for use across various sectors and can be customized to accommodate specific financial arrangements while maintaining compliance with UAE legal requirements.

What sections should be included in a Financial Agreement Between Two Parties?

1. Parties: Full legal identification of the contracting parties, including registration details and addresses

2. Background: Context of the agreement and relationship between the parties

3. Definitions: Detailed definitions of terms used throughout the agreement

4. Financial Terms: Core financial obligations, including amount, currency, and payment terms

5. Payment Schedule: Detailed payment terms, including dates, methods, and conditions

6. Security and Collateral: Details of any security or collateral arrangements

7. Representations and Warranties: Statements of fact and assurances from both parties

8. Covenants: Ongoing obligations and restrictions on both parties

9. Events of Default: Circumstances constituting default and consequences

10. Remedies: Available remedies in case of breach or default

11. Term and Termination: Duration of agreement and termination provisions

12. Governing Law and Jurisdiction: Specification of UAE law application and jurisdiction

13. Notices: Communication procedures between parties

14. Execution: Signature blocks and execution formalities

What sections are optional to include in a Financial Agreement Between Two Parties?

1. Shariah Compliance: Required if the agreement needs to comply with Islamic finance principles

2. Assignment and Transfer: Include if rights under the agreement may be transferred

3. Regulatory Compliance: Required for regulated financial activities or entities

4. Tax Provisions: Include if there are specific tax implications or requirements

5. Force Majeure: Optional clause for unforeseeable circumstances

6. Confidentiality: Include if sensitive financial information is involved

7. Anti-Money Laundering: Required for agreements involving significant financial transactions

8. Electronic Transactions: Include if electronic payment or documentation systems are used

What schedules should be included in a Financial Agreement Between Two Parties?

1. Payment Schedule: Detailed breakdown of payment amounts and dates

2. Security Documents: Details of collateral, guarantees, or other security arrangements

3. Calculation Methodology: Formulas and methods for calculating interest, fees, or other charges

4. Required Documents: List of supporting documents required from each party

5. Compliance Certificates: Templates for ongoing compliance certification

6. Contact Details: Detailed contact information for notices and communications

7. Form of Notices: Templates for various notices required under the agreement

8. KYC Requirements: List of required Know Your Customer documentation

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

Financing Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Banking & Financial Services

Investment & Asset Management

Real Estate & Construction

Trading & Commerce

Manufacturing & Industrial

Technology & Communications

Energy & Resources

Healthcare & Pharmaceuticals

Retail & Consumer Goods

Professional Services

Transport & Logistics

Hospitality & Tourism

Relevant Teams

Legal

Finance

Compliance

Treasury

Risk Management

Commercial Operations

Corporate Governance

Investment

Credit Control

Business Development

Contracts Administration

Islamic Banking

Relevant Roles

Chief Financial Officer

Finance Director

Legal Counsel

Compliance Officer

Treasury Manager

Financial Controller

Investment Manager

Risk Manager

Commercial Director

Business Development Manager

Contract Manager

Company Secretary

Accounts Manager

Credit Manager

Islamic Finance Specialist

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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