Mutual Release Agreement for United Arab Emirates

Mutual Release Agreement Template for United Arab Emirates

A comprehensive legal document governed by UAE law that facilitates the mutual discharge of claims, obligations, and liabilities between two or more parties. This agreement provides a framework for parties to resolve disputes or terminate relationships while ensuring compliance with UAE Civil Code requirements and Sharia principles. It includes detailed provisions for the release of claims, warranties, and representations, while incorporating specific UAE legal requirements regarding contract formation, consideration, and enforcement. The document serves as a binding settlement tool that helps parties achieve closure while managing legal risks under UAE jurisdiction.

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What is a Mutual Release Agreement?

The Mutual Release Agreement is a critical legal instrument used in the United Arab Emirates when parties wish to formally resolve disputes, terminate relationships, or provide mutual releases of claims and obligations. This document is particularly relevant in situations involving commercial disputes, employment separations, partnership dissolutions, or project completions where parties seek to prevent future claims and achieve final closure. The agreement must comply with UAE Civil Code requirements and Sharia law principles, particularly regarding the clarity of terms and mutual consent. It typically includes specific provisions for the release of known and unknown claims, representations about the ownership of claims being released, and warranties about the authority to enter into the agreement. The document's effectiveness under UAE law depends on proper execution and consideration, making it essential to include all required legal elements for enforcement in UAE courts.

What sections should be included in a Mutual Release Agreement?

1. Parties: Identification of all parties to the agreement, including full legal names, addresses, and registration details if companies

2. Background: Context of the dispute or circumstances leading to the release, including reference to any existing agreements or claims

3. Definitions: Key terms used throughout the agreement, including 'Claims', 'Effective Date', and other relevant definitions

4. Mutual Release: Core provision detailing the mutual releases, including scope of claims being released and effective date

5. Consideration: Statement of consideration being exchanged for the releases, even if nominal

6. Representations and Warranties: Statements by each party regarding their authority to enter into the agreement and ownership of claims being released

7. No Admission of Liability: Statement that the agreement does not constitute admission of liability by any party

8. Future Conduct: Obligations regarding future actions, including non-disparagement and cooperation

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

10. Entire Agreement: Integration clause stating this document represents the entire agreement between parties

11. Execution: Signature blocks and execution requirements

What sections are optional to include in a Mutual Release Agreement?

1. Confidentiality: Required when parties wish to keep the existence or terms of the release confidential

2. Insurance Claims: Needed when insurance claims or rights are involved in the release

3. Tax Implications: Important when the release involves significant monetary consideration or tax consequences

4. Third Party Rights: Required when the release affects rights of third parties or related entities

5. Surviving Claims: Needed when certain claims or rights are specifically excluded from the release

6. Return of Property: Include when physical or intellectual property needs to be returned or transferred

7. Non-Competition/Non-Solicitation: Required when parties wish to include restrictions on future business activities

8. Costs: Include when parties need to address payment of legal or other costs related to the dispute

What schedules should be included in a Mutual Release Agreement?

1. Schedule of Released Claims: Detailed list of specific claims, disputes, or rights being released

2. Schedule of Excluded Claims: List of claims specifically excluded from the release

3. Schedule of Related Agreements: List of any related agreements affected by or referenced in the release

4. Schedule of Payment Terms: If applicable, details of any payment arrangements or financial terms

5. Schedule of Properties: If applicable, list of properties or assets involved in the release

6. Schedule of Required Actions: List of specific actions parties must take to effectuate the release

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

Financial Services

Real Estate

Construction

Technology

Healthcare

Manufacturing

Retail

Professional Services

Energy

Transportation and Logistics

Hospitality

Education

Media and Entertainment

Telecommunications

Relevant Teams

Legal

Human Resources

Executive Leadership

Risk Management

Compliance

Operations

Finance

Corporate Affairs

Business Development

Project Management

Contract Administration

Relevant Roles

Legal Counsel

Chief Legal Officer

Human Resources Director

Chief Executive Officer

Chief Financial Officer

Risk Manager

Compliance Officer

Business Development Manager

Project Manager

Operations Director

Contract Manager

Corporate Secretary

General Manager

Managing Director

Partnership Director

Settlement Officer

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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