Payment Agreement For Services Rendered for United Arab Emirates

Payment Agreement For Services Rendered Template for United Arab Emirates

A Payment Agreement For Services Rendered is a legally binding document used in the United Arab Emirates to formalize payment obligations for services that have already been delivered. This agreement, governed by UAE Federal Laws including the Civil Code and Commercial Transactions Law, establishes clear payment terms, schedules, and obligations between the service provider and the client. The document includes specific provisions for payment methods, tax considerations, and dispute resolution mechanisms in accordance with UAE legal requirements, while ensuring compliance with local business practices and Sharia principles where applicable.

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What is a Payment Agreement For Services Rendered?

The Payment Agreement For Services Rendered is essential in UAE business operations where formal documentation of payment obligations is required following the completion of services. This document is typically used when services have been delivered but requires a structured payment arrangement, whether for outstanding payments or installment plans. It ensures compliance with UAE Federal Law No. 5 of 1985 (Civil Code) and Federal Law No. 18 of 1993 (Commercial Transactions Law), incorporating necessary provisions for VAT compliance and electronic payments where applicable. The agreement provides security for both service providers and clients by clearly documenting payment terms, methods, and schedules, while including mechanisms for dispute resolution under UAE jurisdiction. It's particularly valuable in situations where standard invoicing alone is insufficient or where parties need more detailed payment terms and conditions.

What sections should be included in a Payment Agreement For Services Rendered?

1. Parties: Identification of the service provider and the client, including full legal names, addresses, and registration details if companies

2. Background: Context of the agreement, including reference to the services already rendered and the outstanding payment obligation

3. Definitions: Key terms used throughout the agreement, including 'Services', 'Payment Amount', 'Due Date', etc.

4. Services Rendered: Detailed description of the services that have been provided and confirmation of their completion

5. Payment Terms: Specific amount owed, payment schedule, method of payment, and currency

6. Payment Conditions: Any conditions that must be met before payment is made, including documentation requirements

7. Tax Obligations: VAT and other applicable tax considerations, including responsibility for payment

8. Default and Remedies: Consequences of non-payment and available remedies under UAE law

9. Governing Law and Jurisdiction: Explicit reference to UAE law and jurisdiction of UAE courts

10. Notices: How formal communications between parties should be made and delivered

11. Entire Agreement: Confirmation that this agreement represents the complete understanding between parties regarding the payment obligation

What sections are optional to include in a Payment Agreement For Services Rendered?

1. Interest on Late Payments: Include when parties agree to interest charges on delayed payments, ensuring compliance with UAE law on interest

2. Currency Exchange: Required when payment is to be made in a currency other than AED, specifying exchange rate mechanisms

3. Payment Security: Include when additional security for payment is required, such as post-dated checks or bank guarantees

4. Confidentiality: Include when the nature of services rendered involves sensitive information

5. Force Majeure: Include when external factors might affect payment capability, particularly for installment payments

6. Assignment: Include when either party might need to transfer rights or obligations under the agreement

7. Electronic Payments: Include when specific provisions for electronic payment methods are required

What schedules should be included in a Payment Agreement For Services Rendered?

1. Schedule 1 - Service Description: Detailed breakdown of services rendered, including dates, quantities, and specifications

2. Schedule 2 - Payment Schedule: If multiple payments, detailed breakdown of payment amounts and due dates

3. Schedule 3 - Supporting Documentation: List of delivery notes, timesheets, or other evidence of service completion

4. Schedule 4 - Tax Invoices: Copies or details of relevant tax invoices

5. Appendix A - Service Completion Certificates: Copies of any completion certificates or client acceptance documents

6. Appendix B - Bank Details: Banking information for payment processing

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

Payment Agreement

Sector

Banking

Cost

Free to use
Relevant Industries

Professional Services

Construction

Information Technology

Consulting

Healthcare

Education

Real Estate

Financial Services

Manufacturing

Retail

Transportation

Energy

Media and Entertainment

Hospitality

Relevant Teams

Finance

Legal

Procurement

Operations

Treasury

Accounts Payable

Accounts Receivable

Risk Management

Commercial Operations

Contract Administration

Relevant Roles

Finance Manager

Accounts Payable Manager

Chief Financial Officer

Contract Manager

Procurement Manager

Project Manager

Business Owner

Financial Controller

Legal Counsel

Treasury Manager

Accounts Receivable Manager

Operations Director

Company Secretary

Commercial Director

Risk 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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