Partial Settlement Agreement for United Arab Emirates

Partial Settlement Agreement Template for United Arab Emirates

This document is a Partial Settlement Agreement governed by UAE law, designed to resolve specific aspects of a dispute while explicitly preserving other matters for future resolution. It complies with the UAE Civil Code requirements for settlement agreements (sulh) and incorporates relevant provisions of UAE Federal Law No. 5 of 1985. The agreement clearly delineates which claims are being settled and which remain unresolved, providing a structured framework for partial dispute resolution while maintaining legal rights over unsettled matters. It includes essential provisions for payment terms, releases, and confidentiality, all aligned with UAE legal requirements and commercial practices.

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What is a Partial Settlement Agreement?

The Partial Settlement Agreement is a strategic legal instrument used when parties wish to resolve certain aspects of their dispute while maintaining their rights to pursue other claims. This document type is particularly valuable in complex commercial disputes in the UAE where immediate resolution of some issues can benefit all parties, even if complete agreement cannot be reached on all matters. The agreement must comply with UAE Federal Law No. 5 of 1985 (Civil Code) and related regulations, particularly regarding settlement (sulh) provisions. It's commonly used in situations involving multiple claims or when parties want to achieve partial closure while continuing negotiations or litigation on remaining issues. The document includes detailed provisions for the settled matters, explicit preservation of rights for unsettled issues, and clear mechanisms for implementing the partial settlement, all within the UAE legal framework.

What sections should be included in a Partial Settlement Agreement?

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

2. Background: Overview of the dispute, existing relationships between parties, and any relevant prior agreements or proceedings

3. Definitions: Definitions of key terms used throughout the agreement, including distinction between settled and unsettled matters

4. Scope of Settlement: Clear delineation of which specific claims or disputes are being settled under this agreement

5. Settlement Terms: Detailed terms of the settlement including payment amounts, timing, and any other obligations

6. Unsettled Matters: Express identification of matters that remain unresolved and reserved for future resolution

7. Release and Waiver: Specific releases for settled matters while preserving rights for unsettled matters

8. Confidentiality: Obligations regarding confidentiality of the settlement terms and related discussions

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

10. Entire Agreement: Integration clause confirming this document represents the entire agreement regarding the settled matters

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

1. Without Prejudice: Section clarifying that the settlement does not constitute an admission of liability, used when specifically requested by parties

2. Tax Implications: Section addressing tax consequences of the settlement, needed when settlement involves significant monetary transfers

3. Implementation Timeline: Detailed timeline for implementing settlement terms, used for complex settlements with multiple steps

4. Dispute Resolution: Specific procedures for resolving disputes about the settlement agreement itself, used when parties want alternative dispute resolution mechanisms

5. Third Party Rights: Section addressing rights of third parties affected by the settlement, needed when settlement impacts other parties

6. Force Majeure: Provisions for unforeseen circumstances affecting settlement implementation, used for settlements with long-term obligations

What schedules should be included in a Partial Settlement Agreement?

1. Schedule 1 - Settlement Payment Details: Detailed breakdown of settlement amounts, payment schedules, and payment mechanisms

2. Schedule 2 - Settled Claims: Comprehensive list of specific claims being settled under the agreement

3. Schedule 3 - Reserved Claims: Detailed list of claims explicitly reserved and not settled under this agreement

4. Schedule 4 - Settlement Documents: List of documents to be executed as part of the settlement

5. Appendix A - Related Proceedings: List of any related court or arbitration proceedings affected by the settlement

6. Appendix B - Form of Release: Template of any required release documents to be executed

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 & Finance

Insurance

Manufacturing

Retail & Commerce

Oil & Gas

Technology

Healthcare

Transportation & Logistics

Hospitality

Professional Services

Relevant Teams

Legal

Compliance

Finance

Risk Management

Commercial Operations

Project Management

Executive Leadership

Business Development

Claims Management

Corporate Governance

Relevant Roles

Legal Counsel

Chief Legal Officer

Dispute Resolution Manager

Commercial Director

Contract Manager

Chief Executive Officer

Chief Financial Officer

Risk Manager

Compliance Officer

Project Manager

Claims Manager

Settlement Officer

Business Development Director

Operations 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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