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Settlement Agreement Payment for United Arab Emirates

Settlement Agreement Payment Template for United Arab Emirates

This document is a legally binding settlement agreement governed by UAE law, specifically designed to formalize payment arrangements to resolve disputes between parties. It incorporates provisions compliant with UAE Civil Code and Commercial Transactions Law, while respecting Sharia principles regarding interest and financial obligations. The agreement details the settlement sum, payment terms, conditions precedent, and mutual releases, providing a comprehensive framework for dispute resolution through structured payment arrangements. It includes specific enforcement mechanisms available under UAE law and can be executed in both Arabic and English to ensure local court compatibility.

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What is a Settlement Agreement Payment?

The Settlement Agreement Payment document is a crucial legal instrument used in the United Arab Emirates when parties wish to resolve disputes through structured payment arrangements. It serves as a formal record of the settlement terms, incorporating UAE legal requirements and Sharia-compliant payment provisions. This document is particularly valuable in commercial disputes, construction disagreements, or any situation where financial settlement is reached to avoid or conclude litigation. The agreement typically includes detailed payment schedules, security arrangements, and release provisions, all drafted in compliance with UAE Federal Law No. 5 of 1985 (Civil Code) and related commercial legislation. It can be used by both corporate entities and individuals, providing a legally enforceable framework for implementing agreed payment terms while offering protection to both paying and receiving parties.

What sections should be included in a Settlement Agreement Payment?

1. Parties: Full legal identification of all parties to the settlement, including registration details for companies

2. Background: Description of the dispute or circumstances leading to the settlement

3. Definitions: Definitions of key terms used throughout the agreement

4. Settlement Sum: Clear statement of the settlement amount and currency

5. Payment Terms: Detailed payment mechanisms, timing, and bank account details

6. Conditions Precedent: Any conditions that must be met before the settlement becomes effective

7. Representations and Warranties: Basic warranties about capacity to enter agreement and authority to make payment

8. Release and Waiver: Mutual releases and waivers of claims upon completion of payment

9. Default and Remedies: Consequences of payment default and available remedies

10. Governing Law and Jurisdiction: Specification of UAE law and jurisdiction

11. Notices: Process for serving formal notices under the agreement

12. Execution: Signature blocks and execution requirements

What sections are optional to include in a Settlement Agreement Payment?

1. Installment Schedule: Required when payment is to be made in multiple installments

2. Security Provisions: Include when payment is secured by guarantees, assets, or post-dated cheques

3. Confidentiality: Include when parties wish to keep the settlement terms private

4. Tax Provisions: Include when tax implications need to be addressed

5. Interest Provisions: Include when permitted interest on late payments needs to be addressed (considering Sharia principles)

6. Third Party Rights: Include when settlement affects rights of third parties

7. Non-Admission of Liability: Include when party wishes to settle without admitting liability

8. Further Assurance: Include when additional documents or actions may be needed post-settlement

What schedules should be included in a Settlement Agreement Payment?

1. Payment Schedule: Detailed breakdown of payment amounts and dates

2. Bank Details: Complete banking information for payment processing

3. Supporting Documents: Copies of relevant documents evidencing the original dispute or claim

4. Security Documents: Copies of any security documents, guarantees, or post-dated cheques

5. Power of Attorney: If applicable, authorization documents for signatories

6. Original Contracts: Copies of original contracts or agreements related to the dispute

7. Release Documentation: Forms of release to be signed upon completion of payment

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

Payment Agreement

Sector

Banking

Cost

Free to use
Relevant legal definitions























Clauses




























Relevant Industries

Construction

Real Estate

Banking and Finance

Insurance

Manufacturing

Trading

Professional Services

Healthcare

Technology

Retail

Energy

Transportation and Logistics

Hospitality

Relevant Teams

Legal

Finance

Commercial

Compliance

Risk Management

Treasury

Accounts Payable

Dispute Resolution

Operations

Corporate Governance

Business Development

Relevant Roles

Legal Counsel

Chief Legal Officer

Financial Controller

Chief Financial Officer

Commercial Director

Contract Manager

Compliance Officer

Risk Manager

Treasury Manager

Accounts Payable Manager

Dispute Resolution Manager

Business Development Director

Project Manager

Operations Director

Company Secretary

Managing Director

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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