Partnership Settlement Agreement for United Arab Emirates

Partnership Settlement Agreement Template for United Arab Emirates

A comprehensive legal document governed by UAE law that formalizes the dissolution or restructuring of a business partnership. This agreement details the terms and conditions for settling all partnership affairs, including asset distribution, liability allocation, and mutual releases between partners. It ensures compliance with UAE Federal Laws, particularly the Commercial Companies Law and Civil Code, while addressing local regulatory requirements. The document includes provisions for financial settlements, business continuity arrangements, and necessary steps for partnership de-registration or restructuring with relevant UAE authorities.

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What is a Partnership Settlement Agreement?

A Partnership Settlement Agreement is crucial when business partners in the UAE decide to terminate or substantially modify their partnership arrangement. This document is used when partners agree to dissolve their business relationship, redistribute assets, or restructure ownership in compliance with UAE laws. It specifically addresses requirements under UAE Federal Law No. 8 of 1984 (Commercial Companies Law) and related regulations. The agreement typically becomes necessary during business restructuring, partner retirement, dispute resolution, or strategic realignment of business interests. It comprehensively covers financial settlements, asset distribution, liability allocation, regulatory compliance, and necessary steps for partnership modification or dissolution with UAE authorities. The document ensures a clear and legally compliant transition while protecting all parties' interests under UAE jurisdiction.

What sections should be included in a Partnership Settlement Agreement?

1. Parties: Identification of all partnership parties, including full legal names, addresses, and registration details

2. Background: Description of the existing partnership, its business nature, and reasons for settlement

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

4. Settlement Terms: Core terms of the settlement including payment amounts, timing, and conditions

5. Asset Distribution: Detailed allocation of partnership assets, including physical assets, intellectual property, and contracts

6. Liability Allocation: Distribution of existing liabilities and ongoing obligations

7. Release and Discharge: Mutual release of claims and obligations between partners

8. Confidentiality: Obligations regarding confidential information and trade secrets

9. Tax Matters: Handling of tax obligations and distributions

10. Regulatory Compliance: Steps for compliance with UAE regulatory requirements, including de-registration if applicable

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

12. Execution: Signature blocks and execution requirements

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

1. Non-Compete Provisions: Restrictions on future business activities, if agreed between parties

2. Ongoing Cooperation: Terms for transitional assistance or knowledge transfer, if required

3. Employee Matters: Handling of employment relationships if the partnership has employees

4. Insurance and Indemnification: Special provisions for insurance claims and ongoing indemnities

5. Intellectual Property Assignment: Specific IP transfer provisions if significant IP assets exist

6. Third Party Consents: Process for obtaining necessary third-party approvals

7. Bank Accounts and Financial Matters: Specific provisions for handling joint bank accounts and financial instruments

What schedules should be included in a Partnership Settlement Agreement?

1. Schedule 1 - Asset Schedule: Detailed list of all partnership assets and their agreed distribution

2. Schedule 2 - Payment Schedule: Timeline and details of all settlement payments

3. Schedule 3 - Liability Schedule: Comprehensive list of partnership liabilities and their allocation

4. Schedule 4 - Contracts Schedule: List of existing contracts and their disposition

5. Schedule 5 - Required Notices: Template notices required for various authorities and third parties

6. Appendix A - Partnership Documents: Copies of original partnership agreement and relevant amendments

7. Appendix B - Valuation Reports: Any third-party valuations used in settlement calculations

8. Appendix C - Commercial Licenses: Copies of relevant business licenses and registrations

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 legal definitions
Relevant Industries

Professional Services

Real Estate

Trading

Construction

Manufacturing

Retail

Hospitality

Technology

Consulting

Healthcare

Financial Services

Media and Entertainment

Transportation and Logistics

Industrial Services

Relevant Teams

Legal

Finance

Compliance

Corporate Governance

Operations

Risk Management

Business Development

Commercial

Partner Relations

Administration

Relevant Roles

Managing Partner

Business Owner

Chief Executive Officer

Chief Financial Officer

Legal Counsel

Corporate Secretary

Business Development Director

Operations Manager

Finance Manager

Compliance Officer

Risk Manager

Managing Director

Partner Relations Manager

Commercial Director

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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