Money Agreement Between Two Parties for United Arab Emirates

Money Agreement Between Two Parties Template for United Arab Emirates

A comprehensive agreement template governed by UAE law that formalizes financial arrangements between two parties, whether individuals or organizations. The document incorporates essential UAE legal requirements, including provisions for Sharia compliance where applicable, and covers key aspects such as loan amount, repayment terms, profit rates, security arrangements, and default provisions. It includes necessary safeguards and enforcement mechanisms in accordance with UAE Federal Laws, particularly the Civil Code and Commercial Transactions Law, making it suitable for both commercial and personal lending arrangements within the UAE jurisdiction.

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What is a Money Agreement Between Two Parties?

The Money Agreement Between Two Parties Template is designed for use in the United Arab Emirates to document financial arrangements between two parties, whether they are individuals, companies, or a combination of both. This template is particularly relevant when parties need to formalize lending arrangements while ensuring compliance with UAE Federal Laws and, where required, Sharia principles. The document covers essential elements including loan amount, repayment terms, security arrangements, and default provisions, while incorporating necessary legal safeguards under UAE jurisdiction. It can be used for various purposes, from personal loans to business financing, and includes provisions that can be customized based on the specific requirements of the transaction while maintaining legal compliance.

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

1. Parties: Identification and details of the lender and borrower, including full legal names, addresses, and any registration numbers for companies

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

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

4. Loan Amount and Purpose: Specification of the principal amount and intended use of the funds

5. Repayment Terms: Details of repayment schedule, including payment amounts, frequency, and method of payment

6. Interest and Profit Rate: Specification of any interest or profit rate (ensuring Sharia compliance if required)

7. Security: Details of any security or collateral provided for the loan

8. Representations and Warranties: Statements of fact and assurances made by both parties

9. Events of Default: Circumstances that constitute default and consequences thereof

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

11. Notices: Process and addresses for formal communications between parties

12. Execution: Signature blocks and execution requirements

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

1. Early Repayment: Terms and conditions for early repayment of the loan, including any penalties or benefits

2. Assignment: Provisions regarding the ability to transfer rights or obligations under the agreement

3. Force Majeure: Provisions for unforeseen circumstances that may affect the agreement

4. Guarantor Provisions: Include when a third-party guarantor is involved in securing the loan

5. Islamic Finance Provisions: Specific provisions to ensure Sharia compliance, if required

6. Costs and Expenses: Allocation of legal and administrative costs related to the agreement

7. Confidentiality: Provisions for maintaining confidentiality of the agreement terms

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

1. Schedule 1 - Repayment Schedule: Detailed breakdown of payment dates and amounts

2. Schedule 2 - Security Details: Detailed description of any security or collateral provided

3. Schedule 3 - Conditions Precedent: List of conditions that must be satisfied before the loan is provided

4. Appendix A - Form of Notice: Template for formal notices between parties

5. Appendix B - Calculation of Interest/Profit: Methodology for calculating any interest or profit (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

Document Type

Loan Agreement

Sector

Banking

Cost

Free to use
Relevant Industries

Banking & Financial Services

Real Estate

Construction

Retail

Manufacturing

Professional Services

Technology

Healthcare

Education

Small Business

Family Business

Investment

Trading

Relevant Teams

Legal

Finance

Compliance

Risk Management

Treasury

Credit Control

Corporate Governance

Business Development

Contracts Administration

Company Secretariat

Relevant Roles

Chief Financial Officer

Finance Manager

Legal Counsel

Compliance Officer

Credit Manager

Risk Manager

Treasury Manager

Financial Controller

Business Development Manager

Contract Administrator

Company Secretary

Managing Director

Finance Director

Accounts Manager

Legal 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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