The Indemnity and Undertaking Agreement is a crucial legal instrument in the UAE business environment, designed to allocate and manage risks between parties in various commercial relationships. This document is typically used when one party needs to protect another against specific risks, losses, or liabilities arising from business operations, transactions, or specific events. The agreement must comply with UAE Civil Code requirements and commercial regulations, making it particularly important to include specific provisions required under UAE law. It is commonly used in construction projects, financial transactions, corporate restructuring, and major commercial deals where risk allocation is critical. The document can be customized to include various levels of protection and specific undertakings based on the particular business context and requirements of the parties involved.
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1. Parties: Identifies and defines the parties to the agreement, including their full legal names, addresses, and registration details
2. Background: Sets out the context and circumstances leading to the agreement, including any relevant transaction or relationship between the parties
3. Definitions: Defines key terms used throughout the agreement for clarity and consistency
4. Scope of Indemnity: Clearly defines the extent and limitations of the indemnification obligations
5. Indemnification Obligations: Details the specific circumstances triggering indemnification and the process for claiming
6. Undertakings: Lists specific promises and commitments made by the indemnifying party
7. Duration: Specifies the term of the agreement and any survival provisions
8. Notice Requirements: Details the process and timeframes for notifying claims and communications
9. Governing Law and Jurisdiction: Specifies UAE law as governing law and establishes jurisdiction for disputes
10. Execution: Formal signing section including witness requirements as per UAE law
1. Third Party Rights: Include when the indemnity extends to or affects third parties
2. Insurance Requirements: Include when specific insurance coverage is required to support the indemnity
3. Security Provisions: Include when additional security or guarantees are required
4. Confidentiality: Include when sensitive information is involved in the indemnified matters
5. Assignment: Include when transfer of rights needs to be specifically addressed
6. Force Majeure: Include when certain events should excuse performance of obligations
7. Severability: Include when there's risk that certain provisions might be invalid
8. Multiple Indemnitors: Include when there are multiple parties providing indemnity
1. Schedule of Specific Indemnified Matters: Detailed list of specific situations, losses, or claims covered by the indemnity
2. Schedule of Excluded Matters: List of specific exclusions from the scope of indemnity
3. Schedule of Insurance Requirements: Detailed insurance requirements including types, amounts, and specific coverage
4. Schedule of Notice Recipients: Contact details for notices and claims under the agreement
5. Form of Claim Notice: Template for making claims under the indemnity
6. Powers of Attorney: If required, forms of power of attorney for executing the agreement or making claims
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