Joint Settlement Agreement for United Arab Emirates

Joint Settlement Agreement Template for United Arab Emirates

A Joint Settlement Agreement under UAE law is a formal legal document used to resolve disputes between multiple parties through mutual agreement and compromise. This document, governed by UAE Federal Law No. 5 of 1985 (Civil Code) and related legislation, sets out the terms and conditions under which the parties agree to settle their disputes, including payment terms, mutual releases, and ongoing obligations. The agreement must comply with UAE legal requirements, including the need for Arabic versions for court enforcement, and typically includes provisions for confidentiality, governing law, and jurisdiction clauses specific to UAE courts.

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What is a Joint Settlement Agreement?

The Joint Settlement Agreement is a crucial legal instrument in the UAE business environment, used when multiple parties wish to resolve their disputes without (or by terminating) formal litigation or arbitration proceedings. This document type is particularly relevant in the UAE's civil law jurisdiction, where it must comply with the UAE Civil Code and related federal laws. The agreement typically arises from commercial disputes, construction conflicts, or corporate disagreements, and includes detailed provisions for settlement terms, payment arrangements, mutual releases, and future obligations. It serves as a binding contract that, when properly executed, prevents parties from pursuing further legal action on the settled matters. The document must be carefully drafted to ensure enforceability in UAE courts, often requiring both English and Arabic versions, with the Arabic version prevailing in case of disputes.

What sections should be included in a Joint Settlement Agreement?

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

2. Background: Recitals detailing the history of the dispute, any existing legal proceedings, and the parties' intention to settle

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

4. Settlement Terms: The core settlement provisions, including payment terms, mutual releases, and specific obligations

5. Payment Provisions: Detailed terms of any financial settlement, including amounts, payment schedule, and payment methods

6. Mutual Release: Comprehensive release of claims between the parties

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

8. Representations and Warranties: Basic representations about authority to settle and binding nature of the agreement

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

10. Language: Specification of English and Arabic versions and prevalence of Arabic in case of conflict

11. Execution: Signature blocks and execution requirements

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

1. Non-Admission of Liability: Statement that the settlement does not constitute admission of liability by any party - used in disputed matters

2. Ongoing Obligations: Details of any continuing obligations between the parties - included if settlement involves future performance

3. Non-Disparagement: Provisions preventing parties from making negative statements about each other - useful in high-profile or sensitive disputes

4. Tax Provisions: Allocation of tax responsibilities - included if settlement has tax implications

5. Insurance and Indemnification: Insurance requirements and indemnification provisions - used when ongoing risks exist

6. Dispute Resolution: Alternative dispute resolution mechanisms for future disputes - included if parties want to avoid court proceedings

7. Third Party Rights: Provisions regarding rights of third parties - needed if settlement affects third party rights

8. Force Majeure: Provisions for unforeseen circumstances - included if there are ongoing obligations

What schedules should be included in a Joint Settlement Agreement?

1. Schedule 1 - Payment Schedule: Detailed breakdown of payment amounts, dates, and methods if settlement involves installment payments

2. Schedule 2 - Released Claims: Comprehensive list of specific claims being settled and released

3. Schedule 3 - Settlement Documents: List of documents to be executed or withdrawn as part of settlement (e.g., court proceedings)

4. Schedule 4 - Form of Release: Template of any additional release documents to be executed

5. Schedule 5 - Related Parties: List of affiliated entities covered by the settlement

6. Appendix A - Supporting Documents: Copies of relevant documents referenced in the settlement

7. Appendix B - Powers of Attorney: Copies of powers of attorney or authorization documents if applicable

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 Industries

Construction

Real Estate

Banking and Finance

Insurance

Manufacturing

Trading

Technology

Healthcare

Energy and Resources

Transportation and Logistics

Professional Services

Retail

Hospitality

Relevant Teams

Legal

Finance

Compliance

Risk Management

Corporate Governance

Operations

Commercial

Business Development

Project Management

Executive Leadership

Relevant Roles

Chief Executive Officer

Managing Director

Chief Legal Officer

General Counsel

Legal Director

Chief Financial Officer

Commercial Director

Contract Manager

Dispute Resolution Manager

Risk Manager

Compliance Officer

Project Director

Settlement Officer

Corporate Secretary

Business Development 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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