Payment Agreement for United Arab Emirates

Payment Agreement Template for United Arab Emirates

A comprehensive legal document governed by UAE law that establishes and regulates payment obligations between parties. The agreement details payment terms, methods, schedules, and consequences of default, while ensuring compliance with UAE federal laws and regulations, including relevant provisions of the UAE Civil Code and Commercial Transactions Law. Where applicable, it incorporates Sharia-compliant payment structures and includes provisions for enforcement under UAE jurisdiction. The document addresses key aspects such as payment security, default remedies, and dispute resolution mechanisms specific to the UAE legal framework.

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What is a Payment Agreement?

A Payment Agreement is a crucial legal instrument used in the United Arab Emirates to formalize and structure payment obligations between parties. This document is particularly relevant when parties need to establish clear, legally enforceable payment terms, whether for commercial transactions, service agreements, or debt settlements. The agreement must comply with UAE federal laws, including the Civil Code (Federal Law No. 5 of 1985) and Commercial Transactions Law (Federal Law No. 18 of 1993), and where applicable, incorporate Sharia-compliant payment structures. It is commonly used in scenarios involving installment payments, debt restructuring, commercial transactions, or any situation requiring formal documentation of payment obligations with specific terms and conditions under UAE jurisdiction.

What sections should be included in a Payment Agreement?

1. Parties: Identifies and provides full details of all parties to the agreement, including registration numbers and addresses

2. Background: Explains the context of the payment obligation and the relationship between the parties

3. Definitions: Defines key terms used throughout the agreement

4. Payment Amount and Currency: Specifies the total amount payable and the currency of payment

5. Payment Terms: Details the timing, method, and conditions of payment

6. Payment Instructions: Specifies bank account details and payment procedures

7. Default and Remedies: Outlines consequences of payment default and available remedies

8. Force Majeure: Addresses circumstances that may excuse or delay payment obligations

9. Representations and Warranties: States parties' representations regarding their capacity and authority to enter into the agreement

10. Governing Law and Jurisdiction: Specifies UAE law as governing law and defines jurisdiction for disputes

11. Notices: Sets out how formal communications between parties should be made

12. Entire Agreement: Confirms the agreement represents the complete understanding between parties

What sections are optional to include in a Payment Agreement?

1. Shariah Compliance: Required when the agreement needs to comply with Islamic finance principles, addressing interest and payment structures

2. Security Arrangements: Include when payment is secured by collateral, guarantees, or other security instruments

3. Installment Schedule: Required when payment is to be made in installments rather than as a lump sum

4. Early Payment Provisions: Include when early payment options or discounts are available

5. Late Payment Charges: Include when specific penalties or charges for late payment are applicable

6. Third-Party Guarantees: Required when payment is guaranteed by a third party

7. Set-off Rights: Include when parties have the right to set off payments against other obligations

8. Currency Exchange Provisions: Required when payments involve multiple currencies or exchange rate considerations

9. Tax Provisions: Include when specific tax implications need to be addressed

10. Acceleration Clause: Include when certain events can trigger immediate payment of all outstanding amounts

What schedules should be included in a Payment Agreement?

1. Payment Schedule: Detailed breakdown of payment amounts and due dates

2. Bank Account Details: Complete banking information for making payments

3. Calculation Method: Formula or method for calculating variable payments or adjustments

4. Security Documents: Copies of any security documents, guarantees, or collateral agreements

5. Form of Notice: Template for payment-related notices

6. Related Agreements: Copies of any referenced agreements that form basis for payment obligation

7. Authority Documents: Copies of corporate authorizations and powers of attorney

8. KYC Documents: Required identification and verification documents for compliance purposes

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

Agreement Contract

Cost

Free to use
Relevant Industries

Banking & Financial Services

Real Estate & Construction

Retail & Commercial

Manufacturing & Industrial

Professional Services

Healthcare

Technology & Software

Energy & Utilities

Telecommunications

Education

Hospitality & Tourism

Import/Export

Logistics & Transportation

Relevant Teams

Legal

Finance

Treasury

Accounts Receivable

Credit Control

Risk Management

Compliance

Commercial Operations

Contract Management

Collections

Payment Operations

Corporate Finance

Relevant Roles

Chief Financial Officer

Finance Director

Financial Controller

Treasury Manager

Accounts Receivable Manager

Credit Controller

Legal Counsel

Contracts Manager

Commercial Director

Risk Manager

Collections Manager

Payment Operations Manager

Compliance Officer

Business Development Manager

Financial Analyst

Corporate Finance 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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