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Mutual Release Agreement Of Purchase And Sale for United Arab Emirates

Mutual Release Agreement Of Purchase And Sale Template for United Arab Emirates

A comprehensive legal document governed by UAE law that facilitates the mutual discharge of obligations and liabilities between parties involved in a purchase and sale transaction. The agreement serves to formally document the parties' intention to release each other from any claims, known or unknown, arising from their original transaction. It includes specific provisions compliant with UAE Civil and Commercial Codes, ensuring enforceability under local jurisdiction while providing clear terms for the scope of release, consideration, and any surviving obligations. The document incorporates necessary safeguards and representations required under UAE law to ensure its validity and effectiveness.

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Mutual Release Agreement Of Purchase And Sale

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What is a Mutual Release Agreement Of Purchase And Sale?

The Mutual Release Agreement of Purchase and Sale is a crucial legal instrument used in the United Arab Emirates when parties wish to formally conclude their commercial relationship arising from a purchase and sale transaction and protect themselves from future claims. This document is particularly useful following the completion of significant commercial transactions, during dispute settlements, or when parties wish to create a clean break from their previous business relationship. It must comply with UAE Federal Law No. 5 of 1985 (Civil Code) and Federal Law No. 18 of 1993 (Commercial Transactions Law), among other relevant legislation. The agreement typically includes detailed provisions about the original transaction, specific claims being released, any consideration being provided, and representations about the parties' authority to enter into such an agreement. It's commonly used across various industries in the UAE's dynamic business environment and can be adapted to address specific aspects of the underlying transaction while maintaining its core purpose of mutual release.

What sections should be included in a Mutual Release Agreement Of Purchase And Sale?

1. Parties: Identification of all parties to the agreement, including full legal names, addresses, and registration details for companies

2. Background: Recitals describing the original purchase and sale transaction, any disputes or claims that have arisen, and the parties' desire to mutually release each other

3. Definitions: Definitions of key terms used throughout the agreement, including 'Claims', 'Effective Date', 'Original Agreement', etc.

4. Acknowledgment of Original Transaction: Summary of the original purchase and sale transaction, including date, subject matter, and key terms

5. Mutual Release: Core provision where parties mutually release each other from all claims related to the original transaction

6. Scope of Release: Detailed description of what claims are covered by the release, including known and unknown claims

7. Consideration: Statement of the consideration being provided for the release, if any

8. Representations and Warranties: Basic representations about authority to enter into the agreement and understanding of its terms

9. Governing Law and Jurisdiction: Specification of UAE law as governing law and designation of competent courts

10. Execution: Signature blocks and execution formalities compliant with UAE law

What sections are optional to include in a Mutual Release Agreement Of Purchase And Sale?

1. Confidentiality: Terms regarding confidentiality of the release agreement and its terms, used when parties want to keep the settlement private

2. Surviving Obligations: Identification of any obligations from the original agreement that survive the release, used when certain provisions should remain in effect

3. Tax Implications: Addresses responsibility for any tax consequences of the release, used when significant tax implications exist

4. Non-Admission of Liability: Statement that the release does not constitute admission of wrongdoing, used in disputed matters

5. Return of Property: Provisions regarding return of any property or documents, used when physical items need to be exchanged

6. Further Assurance: Commitment to execute additional documents if needed, used in complex transactions

7. Severability: Provision for severance of invalid terms, used when there's concern about enforceability of specific provisions

What schedules should be included in a Mutual Release Agreement Of Purchase And Sale?

1. Schedule 1 - Original Agreement: Copy or summary of the original purchase and sale agreement being released

2. Schedule 2 - Specific Claims Released: Detailed list of specific claims or disputes being released, if any

3. Schedule 3 - Settlement Payment Details: Details of any settlement payments, including payment terms and bank details, if applicable

4. Appendix A - Corporate Authorizations: Copies of corporate authorizations for executing the release, if parties are companies

5. Appendix B - Related Agreements: List or copies of any related agreements affected by the release

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Document Type

Release Agreement

Cost

Free to use
Relevant legal definitions



























Clauses





























Relevant Industries

Real Estate

Manufacturing

Retail

Wholesale Trade

Construction

Professional Services

Technology

Automotive

Industrial Equipment

Consumer Goods

Energy

Healthcare

Hospitality

Import/Export

Maritime

Relevant Teams

Legal

Compliance

Risk Management

Commercial

Finance

Operations

Business Development

Sales

Procurement

Corporate Governance

Executive Leadership

Relevant Roles

Legal Counsel

Contract Manager

Business Development Manager

Chief Legal Officer

Commercial Director

Risk Manager

Compliance Officer

Chief Executive Officer

Chief Financial Officer

Operations Manager

Project Manager

General Manager

Company Secretary

Sales Director

Procurement 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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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