The Release Of Payment Agreement is a critical document used in the United Arab Emirates when one party wishes to formally discharge another party from a financial obligation. This document is particularly relevant in situations involving debt settlement, contract completion, or dispute resolution. It is governed by UAE Federal Law No. 5 of 1985 (Civil Code) and Federal Law No. 18 of 1993 (Commercial Transactions Law), which provide the legal framework for such releases. The agreement typically includes detailed information about the original debt, payment history, and terms of release, serving as definitive evidence of the discharge of financial obligations. It's commonly used in commercial transactions, real estate dealings, and business settlements, providing legal certainty and protection for both the releasing and released parties. The document must comply with UAE documentary requirements and should be drafted with consideration of local legal practices and customs.

1. Parties: Identification of all parties involved - the releasor (party providing the release) and releasee (party being released), including full legal names and addresses

2. Background: Recitals explaining the context of the original debt/payment obligation, reference to original agreements, and current status

3. Definitions: Definitions of key terms used in the agreement, including 'Release Amount', 'Original Debt', 'Effective Date', etc.

4. Original Obligation: Details of the original payment obligation, including amount, date incurred, and nature of the debt

5. Release Terms: Specific terms of the release, including the amount being released and scope of the release

6. Consideration: Statement of consideration being provided for the release (if any)

7. Representations and Warranties: Statements by both parties regarding their authority to enter into the agreement and the validity of the release

8. Governing Law and Jurisdiction: Specification of UAE law as governing law and designation of relevant UAE courts for dispute resolution

9. Execution: Formal execution clause meeting UAE requirements, including date and signature blocks