The Partial Payment Contract is a crucial document used in UAE business transactions where goods, services, or projects are paid for in installments or against specific milestones. This contract type is particularly relevant in the UAE's dynamic business environment, where complex commercial transactions often require structured payment arrangements. The document ensures compliance with UAE Federal Law No. 5 of 1985 (Civil Code) and Federal Law No. 18 of 1993 (Commercial Code), while incorporating Sharia-compliant payment terms. It is commonly used in construction projects, large-scale purchases, and service agreements where full upfront payment is not practical or desired. The contract includes essential provisions for payment security, default remedies, and dispute resolution mechanisms specific to UAE jurisdiction.
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1. Parties: Identification and details of all contracting parties
2. Background: Context of the agreement and relationship between parties
3. Definitions: Key terms used throughout the contract
4. Subject Matter: Clear description of goods/services being contracted for
5. Total Contract Value: Statement of the full contract price and payment breakdown
6. Payment Terms: Detailed structure of partial payments including amounts, dates, and methods
7. Payment Conditions: Conditions precedent for each payment installment
8. Default and Remedies: Consequences and procedures in case of payment default
9. Security: Required security deposits, guarantees, or collateral
10. Obligations of the Parties: Detailed responsibilities of each party
11. Term and Termination: Duration of contract and termination provisions
12. Dispute Resolution: Procedures for handling disputes under UAE law
13. Governing Law: Specification of UAE law as governing law
14. Notices: Communication procedures between parties
15. General Provisions: Standard boilerplate clauses required under UAE law
1. Force Majeure: Include when specific events might affect payment capability
2. Interest Provisions: Include if Sharia-compliant profit rates apply to late payments
3. Third Party Rights: Include when payment obligations involve guarantors or third parties
4. Insurance: Include when insurance is required to secure payment obligations
5. Confidentiality: Include when payment terms contain sensitive commercial information
6. Assignment: Include when rights to receive payments may be transferred
7. VAT and Taxation: Include when tax implications affect payment structure
1. Payment Schedule: Detailed breakdown of payment amounts and due dates
2. Technical Specifications: Details of goods/services linked to payment milestones
3. Form of Payment Notice: Template for payment requests and notifications
4. Security Documentation: Forms of guarantee or security instruments
5. Milestone Completion Criteria: Criteria for triggering payment obligations
6. Contact Details: List of authorized representatives for payment matters
7. Default Notice Templates: Standard forms for default notifications
Relevant legal definitions
Agreement
Advance Payment
Business Day
Contract Price
Completion Date
Default Event
Default Notice
Delivery
Due Date
Effective Date
Final Payment
Force Majeure Event
Goods
Installment
Interest Rate
Late Payment
Milestone
Payment Certificate
Payment Schedule
Payment Security
Performance Security
Purchase Price
Related Documents
Security Deposit
Services
Substantial Completion
Term
Territory
UAE
Working Hours
Advance Payment
Business Day
Contract Price
Completion Date
Default Event
Default Notice
Delivery
Due Date
Effective Date
Final Payment
Force Majeure Event
Goods
Installment
Interest Rate
Late Payment
Milestone
Payment Certificate
Payment Schedule
Payment Security
Performance Security
Purchase Price
Related Documents
Security Deposit
Services
Substantial Completion
Term
Territory
UAE
Working Hours
Clauses
Payment Terms
Payment Schedule
Security
Default
Interest and Charges
Force Majeure
Representations and Warranties
Dispute Resolution
Governing Law
Assignment
Notices
Termination
Confidentiality
Entire Agreement
Severability
Amendment
Waiver
Third Party Rights
Time of Essence
Compliance
Records and Audit
Set-off
Security Enforcement
Risk Allocation
Insurance
Indemnification
Performance Obligations
Milestone Completion
Documentation Requirements
Communication Protocol
Payment Schedule
Security
Default
Interest and Charges
Force Majeure
Representations and Warranties
Dispute Resolution
Governing Law
Assignment
Notices
Termination
Confidentiality
Entire Agreement
Severability
Amendment
Waiver
Third Party Rights
Time of Essence
Compliance
Records and Audit
Set-off
Security Enforcement
Risk Allocation
Insurance
Indemnification
Performance Obligations
Milestone Completion
Documentation Requirements
Communication Protocol
Relevant Industries
Construction
Real Estate
Manufacturing
Retail
Wholesale Trade
Technology Services
Professional Services
Industrial Equipment
Automotive
Consumer Goods
Infrastructure Development
Energy
Healthcare
Education
Hospitality
Relevant Teams
Legal
Finance
Procurement
Commercial
Operations
Sales
Risk Management
Treasury
Credit Control
Contract Administration
Project Management
Business Development
Relevant Roles
Chief Financial Officer
Finance Director
Commercial Manager
Contract Manager
Procurement Manager
Project Manager
Legal Counsel
Business Development Manager
Account Manager
Treasury Manager
Credit Controller
Financial Controller
Risk Manager
Operations Director
Sales Manager
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