Three Way Partnership Agreement for United Arab Emirates

Three Way Partnership Agreement Template for United Arab Emirates

A comprehensive legal agreement governed by UAE law that establishes and regulates a partnership between three distinct parties. The document complies with UAE Federal Law No. 32 of 2021 (Commercial Companies Law) and related regulations, detailing the rights, obligations, and responsibilities of all three partners. It covers crucial aspects including capital contributions, profit sharing, management structure, decision-making processes, and dispute resolution mechanisms, while incorporating specific UAE legal requirements such as local ownership provisions where applicable. The agreement is structured to accommodate both UAE-based and international parties, with consideration for UAE mainland and free zone regulations.

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What is a Three Way Partnership Agreement?

The Three Way Partnership Agreement is a specialized legal instrument used when three distinct parties wish to establish a formal business partnership in the United Arab Emirates. This document is particularly relevant in the UAE's dynamic business environment, where cross-border collaborations and joint ventures are common. It's designed to comply with UAE Federal Law No. 32 of 2021 and related regulations, making it suitable for various business structures including mainland companies, free zone entities, and hybrid arrangements. The agreement typically includes detailed provisions for capital contributions, profit sharing, management rights, operational control, and exit mechanisms, while ensuring compliance with local ownership requirements where applicable. It's commonly used for joint ventures, strategic alliances, and complex business collaborations where three parties bring different strengths or resources to the partnership.

What sections should be included in a Three Way Partnership Agreement?

1. Parties: Identification and details of all three partners, including full legal names, addresses, and registration details if corporate entities

2. Background: Context of the partnership formation, business objectives, and general intent of the parties

3. Definitions: Defined terms used throughout the agreement for clarity and consistency

4. Partnership Structure: Legal form of partnership, ownership percentages, and capital contributions of each partner

5. Business Scope: Detailed description of partnership's business activities and objectives

6. Capital and Financing: Initial and ongoing capital contributions, funding mechanisms, and capital maintenance requirements

7. Profit and Loss Sharing: Distribution of profits and allocation of losses among partners

8. Management and Control: Management structure, voting rights, and decision-making processes

9. Partner Obligations: Specific responsibilities and commitments of each partner

10. Reserved Matters: Decisions requiring unanimous or special majority approval

11. Transfer of Interests: Rules regarding transfer of partnership interests, including right of first refusal

12. Term and Termination: Duration of partnership and circumstances for termination

13. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and applicable law

14. Confidentiality: Protection of partnership and partner confidential information

15. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

What sections are optional to include in a Three Way 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 licensing arrangements, included when IP is significant to the business

3. Employee Matters: Employment policies and procedures, included when partnership will have significant workforce

4. Islamic Finance Compliance: Specific provisions ensuring Shariah compliance, included when required by partners or business nature

5. Exit Strategy: Detailed procedures for partner exit or business sale, included for longer-term partnerships

6. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in certain industries or high-risk environments

7. Environmental Compliance: Environmental obligations and commitments, included for businesses with environmental impact

8. Technology and Data Protection: Digital assets management and data protection requirements, included for tech-focused partnerships

What schedules should be included in a Three Way Partnership Agreement?

1. Business Plan: Detailed business plan including market analysis, strategy, and financial projections

2. Capital Contributions: Detailed breakdown of each partner's initial and committed capital contributions

3. Assets Schedule: List of assets contributed by each partner to the partnership

4. Key Personnel: Details of key management positions and appointed individuals

5. Intellectual Property: Detailed list of IP rights owned or licensed by the partnership

6. Partner Contact Details: Complete contact information and authorized representatives for each partner

7. Reserved Matters List: Comprehensive list of decisions requiring special approval

8. Financial Procedures: Detailed accounting policies and financial management procedures

9. Service Level Agreements: Performance standards and service levels between partners if applicable

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

Technology & Digital Services

Real Estate & Construction

Financial Services

Healthcare & Pharmaceuticals

Retail & Consumer Goods

Manufacturing & Industrial

Energy & Resources

Hospitality & Tourism

Transportation & Logistics

Professional Services

Media & Entertainment

Education & Training

Relevant Teams

Legal

Corporate Affairs

Business Development

Finance

Compliance

Strategy

Operations

Risk Management

Commercial

Executive Leadership

Investment

Corporate Governance

Relevant Roles

Chief Executive Officer

Managing Director

Legal Counsel

Corporate Lawyer

Business Development Director

Chief Financial Officer

Investment Manager

Partnership Manager

Operations Director

Compliance Officer

Strategy Director

Commercial Director

Board Member

Company Secretary

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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