Temporary Partnership Agreement Template for United Arab Emirates

A comprehensive legal document governed by UAE law that establishes a temporary business partnership between two or more parties for a specific project or limited duration. The agreement complies with UAE Federal Law No. 32 of 2021 (Commercial Companies Law) and related regulations, defining the partnership's scope, duration, capital contributions, profit-sharing arrangements, and management structure. It includes specific provisions for partnership dissolution and addresses key aspects of UAE business practices while ensuring protection of all parties' interests during the temporary collaboration period.

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What is a Temporary Partnership Agreement?

The Temporary Partnership Agreement is a crucial legal instrument used in the United Arab Emirates when parties wish to collaborate on specific projects or ventures for a predetermined period. This document, governed by UAE Federal Law No. 32 of 2021 and related regulations, is particularly valuable for businesses seeking to combine resources and expertise without establishing a permanent legal entity. The agreement details essential elements including capital contributions, profit-sharing mechanisms, management responsibilities, and specific termination provisions. It's commonly used in project-based collaborations, joint ventures, and limited-duration business opportunities across various sectors in the UAE market. The document must comply with UAE Commercial Companies Law and consider local business practices while providing clear exit mechanisms upon project completion or partnership termination.

What sections should be included in a Temporary Partnership Agreement?

1. Parties: Identification of all partnership parties with full legal names and addresses

2. Background: Context of the partnership formation and brief description of partners' business activities

3. Definitions: Key terms used throughout the agreement

4. Partnership Purpose and Scope: Detailed description of the specific project or business venture for which the partnership is formed

5. Duration: Specific term of the partnership with clear start and end dates

6. Capital Contributions: Details of initial and any subsequent capital contributions from each partner

7. Profit and Loss Sharing: Formula and mechanisms for distributing profits and losses

8. Management and Control: Partnership management structure and decision-making processes

9. Partners' Duties and Obligations: Specific responsibilities and commitments of each partner

10. Banking and Financial Arrangements: Details of partnership bank accounts and financial management

11. Termination: Circumstances and procedures for early termination

12. Dissolution and Winding Up: Process for partnership dissolution and asset distribution

13. Governing Law and Jurisdiction: Confirmation of UAE law application and jurisdiction

14. Notices: Process for formal communications between partners

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

1. Non-Competition: Restrictions on partners engaging in competing businesses, used when partners have other business interests

2. Intellectual Property Rights: IP ownership and usage rights, included when the partnership involves creation or use of IP

3. Insurance: Required insurance coverage, included for high-risk projects or regulatory requirements

4. Force Majeure: Provisions for unforeseen circumstances, important for longer-term temporary partnerships

5. Confidentiality: Protection of sensitive information, essential when sharing proprietary information

6. Dispute Resolution: Alternative dispute resolution procedures, recommended for higher-value partnerships

7. Assignment and Transfer: Rules for transferring partnership interests, relevant for longer temporary partnerships

What schedules should be included in a Temporary Partnership Agreement?

1. Schedule 1 - Business Plan: Detailed project or business plan for the temporary partnership

2. Schedule 2 - Capital Contributions Schedule: Detailed breakdown of each partner's capital contributions and timing

3. Schedule 3 - Profit Distribution Mechanism: Detailed calculation methods and timing for profit distribution

4. Schedule 4 - Management Structure: Detailed organizational structure and decision-making procedures

5. Schedule 5 - Project Timeline: Key milestones and deadlines for the partnership project

6. Appendix A - Partner Representatives: List of authorized representatives for each partner

7. Appendix B - Required Licenses and Permits: List of necessary regulatory approvals and licenses

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

Publisher

Genie AI

Cost

Free to use

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