Termination Of Contract Due To Non Performance for United Arab Emirates

Termination Of Contract Due To Non Performance Template for United Arab Emirates

A formal legal document governed by UAE law, specifically aligned with the UAE Civil Code (Federal Law No. 5 of 1985), that serves to terminate a contractual relationship due to one party's failure to perform their contractual obligations. This document outlines the specific instances of non-performance, provides evidence of breaches, details the legal basis for termination under UAE law, and specifies the consequences and post-termination obligations of both parties. It includes provisions for the protection of rights, transition arrangements, and compliance with UAE legal requirements regarding contract termination.

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What is a Termination Of Contract Due To Non Performance?

This Termination Of Contract Due To Non Performance document is essential in UAE business operations where one party has failed to fulfill their contractual obligations. It is used when informal resolution attempts have been unsuccessful and formal termination becomes necessary. The document must comply with UAE Civil Code requirements, particularly Articles 267-272, which govern contract termination. It serves as a formal record of the termination decision, documenting the grounds for termination, providing evidence of non-performance, and establishing the framework for post-termination obligations. This document is crucial for protecting the terminating party's legal rights while ensuring compliance with UAE legal requirements for contract termination. It includes detailed information about the original contract, specific breaches, prior notifications, and the legal basis for termination under UAE law.

What sections should be included in a Termination Of Contract Due To Non Performance?

1. Parties: Full legal names and details of the contracting parties, including their registered addresses and any relevant registration numbers

2. Background: Brief description of the original contract, its date, purpose, and key obligations of the parties

3. Definitions: Key terms used in the termination notice, including references to the original contract definitions

4. Details of Non-Performance: Specific instances and nature of non-performance, including dates, specific breaches, and impact of the breaches

5. Previous Notices and Communications: Summary of prior notifications, warnings, or attempts to remedy the situation

6. Legal Basis for Termination: Reference to relevant contract clauses and UAE legal provisions justifying the termination

7. Termination Statement: Clear and unequivocal statement of contract termination, including effective date

8. Post-Termination Obligations: Outline of remaining obligations, return of materials, confidentiality requirements, and other post-termination duties

9. Reservation of Rights: Statement preserving rights to claim damages or other remedies under UAE law

10. Execution: Signature blocks for authorized representatives of both parties

What sections are optional to include in a Termination Of Contract Due To Non Performance?

1. Transition Arrangements: Used when there needs to be a handover period or specific transition requirements

2. Settlement Terms: Include when parties have agreed to specific financial settlements or payment terms as part of the termination

3. Non-Compete and Non-Solicitation: Include when the original contract contained such provisions that survive termination

4. Dispute Resolution: Include when specific dispute resolution mechanisms need to be established for post-termination matters

5. Return of Confidential Information: Include detailed procedures when significant confidential information needs to be returned or destroyed

What schedules should be included in a Termination Of Contract Due To Non Performance?

1. Schedule 1 - Original Contract: Copy of the original contract being terminated

2. Schedule 2 - Evidence of Non-Performance: Documentary evidence of breaches, including correspondence, reports, or third-party assessments

3. Schedule 3 - Previous Notices: Copies of all relevant notices and communications regarding the non-performance

4. Schedule 4 - Outstanding Payments and Obligations: List of any outstanding payments, deliverables, or obligations from either party

5. Schedule 5 - Handover Requirements: Detailed list of items, documents, or materials to be returned or transferred

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

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Construction

Real Estate

Information Technology

Manufacturing

Professional Services

Retail

Healthcare

Education

Financial Services

Telecommunications

Energy

Transportation

Hospitality

Engineering

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Relevant Teams

Legal

Procurement

Operations

Compliance

Risk Management

Commercial

Contract Management

Business Development

Supply Chain

Project Management

Account Management

Executive Leadership

Relevant Roles

Legal Counsel

Contract Manager

Procurement Manager

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Operations Director

Chief Executive Officer

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Chief Operating Officer

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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