Promise To Pay Contract for United Arab Emirates

Promise To Pay Contract Template for United Arab Emirates

A legally binding document governed by UAE law that formalizes a debtor's commitment to pay a specified amount to a creditor under defined terms and conditions. The document complies with UAE Federal Law No. 5 of 1985 (Civil Code) and related commercial regulations, incorporating necessary elements for enforceability in UAE courts. It includes detailed payment terms, consequences of default, and may include provisions for security or guarantees. The document serves as both a acknowledgment of debt and a formal promise of repayment, structured to protect the creditor's interests while providing clear obligations for the debtor.

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What is a Promise To Pay Contract?

The Promise To Pay Contract is a crucial legal instrument in the United Arab Emirates' commercial and civil landscape, commonly used to formalize payment obligations and debt arrangements. This document is particularly relevant when there's a need to restructure existing debt, acknowledge outstanding payments, or establish formal payment plans. It must comply with UAE Federal Laws, including the Civil Code and Commercial Transactions Law, while potentially incorporating Sharia principles. The contract typically includes comprehensive details about the debt, payment schedule, parties' obligations, and enforcement mechanisms. It's frequently used in both commercial and personal contexts, from corporate debt restructuring to individual payment arrangements, and can be essential for debt enforcement in UAE courts.

What sections should be included in a Promise To Pay Contract?

1. Parties: Full legal names, addresses, and identification details of the creditor and debtor

2. Background: Origins of the debt, circumstances leading to this promise, and acknowledgment of the original obligation

3. Definitions: Key terms used in the agreement, including 'Due Date', 'Principal Amount', 'Payment Schedule', etc.

4. Acknowledgment of Debt: Clear statement of the exact amount owed and confirmation of the debt's validity

5. Promise to Pay: Explicit promise to pay the specified amount, including payment terms and schedule

6. Payment Terms: Detailed payment schedule, method of payment, and currency

7. Interest and Charges: Any applicable interest rates or additional charges (ensuring compliance with UAE law)

8. Default Provisions: Consequences of missing payments and remedies available to the creditor

9. Representations and Warranties: Debtor's confirmations regarding their ability to pay and the debt's validity

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

11. Execution: Signature blocks and execution requirements

What sections are optional to include in a Promise To Pay Contract?

1. Security: Details of any collateral or security provided for the debt - include when the promise is secured

2. Guarantor Provisions: Terms applying to any guarantors - include when there is a third-party guarantee

3. Early Payment Provisions: Terms for early repayment options - include when early payment is permitted

4. Force Majeure: Provisions for unforeseen circumstances affecting payment ability - include in longer-term payment arrangements

5. Assignment: Rights to assign the debt to third parties - include when debt assignment might be relevant

6. Notices: Communication procedures between parties - include in more complex arrangements

7. Costs and Expenses: Allocation of legal and enforcement costs - include when significant costs might be involved

What schedules should be included in a Promise To Pay Contract?

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

2. Original Debt Documentation: Copies of original agreements or documents evidencing the debt

3. Security Documentation: Details and copies of any security or collateral documents

4. Guarantor Documents: Guarantor identification and commitment documents if applicable

5. Power of Attorney: If applicable, POA documentation for signing parties

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

Manufacturing

Retail

Trading & Distribution

Professional Services

Healthcare

Education

Hospitality

Technology

Telecommunications

Relevant Teams

Legal

Finance

Credit Control

Treasury

Risk Management

Compliance

Collections

Accounts Receivable

Commercial Operations

Corporate Governance

Relevant Roles

Chief Financial Officer

Finance Director

Credit Controller

Financial Manager

Legal Counsel

Corporate Lawyer

Collections Manager

Accounts Receivable Manager

Treasury Manager

Risk Manager

Compliance Officer

Business Development Manager

Contract 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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