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Settlement Release Letter for United Arab Emirates

Settlement Release Letter Template for United Arab Emirates

A Settlement Release Letter under UAE law is a formal legal document that finalizes the resolution of a dispute between parties. It documents the terms of settlement and includes a comprehensive release of claims, effectively preventing future legal action related to the settled matter. The document must comply with UAE Civil Code requirements and may need to be in both Arabic and English to be enforceable in UAE courts. It typically includes specific details about the settlement amount, payment terms, and the scope of the release, while also incorporating necessary legal provisions to ensure enforceability under UAE jurisdiction.

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Settlement Release Letter

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What is a Settlement Release Letter?

The Settlement Release Letter is a crucial legal instrument in the UAE's dispute resolution landscape, used to formally document the settlement of disputes and release of claims between parties. This document type is particularly important in the UAE business environment where formal documentation of settlements is essential for legal certainty and enforcement. It must be drafted in compliance with UAE Civil Code (Federal Law No. 5 of 1985) and related regulations, often requiring both Arabic and English versions for official use. The document serves multiple purposes: it records the settlement terms, provides a comprehensive release of claims, and creates a legally binding obligation that can be enforced through UAE courts. It's commonly used in various contexts, from commercial disputes to employment matters, and can be crucial in preventing future litigation by clearly documenting the parties' agreement to resolve their differences.

What sections should be included in a Settlement Release Letter?

1. Letter Header: Date, addressee details, and reference number if applicable

2. Subject Line: Clear identification of the letter as a Settlement Release

3. Identification of Parties: Full legal names and details of all parties involved

4. Dispute Reference: Clear description of the dispute or claim being settled

5. Settlement Amount: Statement of the agreed settlement sum and payment terms

6. Release Statement: Explicit release language waiving all claims related to the dispute

7. Acknowledgment: Confirmation that the settlement is full and final

8. Governing Law: Statement that UAE law governs the settlement

9. Signature Block: Space for signatures of all parties and witnesses

What sections are optional to include in a Settlement Release Letter?

1. Confidentiality Statement: Used when parties wish to keep the settlement terms confidential

2. Non-Admission of Liability: When the settling party wishes to explicitly state that settlement does not constitute admission of liability

3. Return of Property/Documents: When physical items or documents need to be returned as part of settlement

4. Ongoing Obligations: When certain obligations continue post-settlement

5. Non-Disparagement: When parties agree not to make negative statements about each other

6. Arabic Translation: When an official Arabic version is required for court filing or official purposes

What schedules should be included in a Settlement Release Letter?

1. Payment Schedule: Details of installment payments if applicable

2. List of Released Claims: Detailed enumeration of all claims being released

3. Related Documents: List of any relevant agreements, court cases, or other documents being referenced

4. Authority Documentation: Proof of authority to sign for corporate entities

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

Banking and Financial Services

Construction and Real Estate

Manufacturing

Retail and Commercial

Professional Services

Technology and Communications

Healthcare

Energy and Resources

Transportation and Logistics

Insurance

Education

Relevant Teams

Legal

Compliance

Risk Management

Executive Leadership

Human Resources

Finance

Operations

Corporate Secretariat

Claims

Dispute Resolution

Business Development

Relevant Roles

Legal Counsel

General Counsel

Compliance Officer

Risk Manager

Chief Legal Officer

Contract Manager

Chief Executive Officer

Chief Financial Officer

Human Resources Director

Operations Manager

Company Secretary

Settlement Officer

Claims Manager

Dispute Resolution Manager

Business Development 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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