The Deed of Indemnity serves as a crucial legal instrument in UAE business transactions, providing a formal mechanism for risk allocation and protection against potential losses. It is commonly used in corporate transactions, project finance, real estate developments, and commercial arrangements where parties seek to clearly define and allocate potential liabilities. The document must comply with UAE legal requirements, particularly the UAE Civil Code and Commercial Transactions Law, and requires proper execution as a deed to ensure maximum enforceability. This type of agreement is especially relevant in complex commercial transactions where parties need robust protection against specific risks or where regulatory requirements mandate formal indemnification arrangements. The deed format provides additional legal certainty and enforceability compared to simple contractual indemnities.
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1. Parties: Identifies all parties to the deed, including the Indemnifier and the Indemnitee, with full legal names and addresses
2. Background: Sets out the context and circumstances leading to the need for the indemnity
3. Definitions and Interpretation: Defines key terms used in the deed and establishes rules of interpretation
4. Indemnity: The core provision detailing the scope and nature of the indemnification obligation
5. Duration: Specifies the period during which the indemnity remains effective
6. Claims Procedure: Details the process for making and handling indemnity claims
7. Payment Terms: Specifies timing and method of indemnity payments
8. Representations and Warranties: Essential statements of fact and assurances from both parties
9. Governing Law and Jurisdiction: Specifies UAE law as governing law and establishes jurisdiction for disputes
10. Execution: Formal execution block meeting UAE requirements for deeds
1. Security: Required when additional security for the indemnity obligations is being provided
2. Insurance: Include when specific insurance requirements are part of the indemnity arrangement
3. Third Party Rights: Needed when the indemnity may affect or benefit third parties
4. Confidentiality: Include when the indemnity relates to sensitive commercial information
5. Assignment: Required when transfer of rights under the indemnity needs to be addressed
6. Force Majeure: Include when certain events should excuse performance of the indemnity obligations
7. Sanctions Compliance: Required when parties are subject to international trade or sanctions regulations
1. Schedule 1 - Specific Indemnified Matters: Detailed list of specific matters, losses or circumstances covered by the indemnity
2. Schedule 2 - Claim Notice Requirements: Detailed requirements for the form and content of claim notices
3. Schedule 3 - Security Details: Details of any security provided (if applicable)
4. Schedule 4 - Related Agreements: List and details of any related agreements referenced in the indemnity
5. Appendix A - Form of Claim Notice: Template for submitting indemnity claims
6. Appendix B - Power of Attorney: If required for execution or claims handling
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