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Termination Of A Contract for United Arab Emirates

Termination Of A Contract Template for United Arab Emirates

This document serves as a comprehensive template for contract termination under UAE law, specifically designed to comply with Federal Law No. 5 of 1985 (UAE Civil Code) and related commercial regulations. It provides a structured framework for parties to formally end their contractual relationships while addressing key aspects such as notice periods, settlement of accounts, return of property, and ongoing obligations. The template incorporates UAE-specific legal requirements, including proper documentation of mutual consent or grounds for unilateral termination, and ensures all necessary provisions for a legally binding termination are included.

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Termination Of A Contract

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What is a Termination Of A Contract?

The Termination Of A Contract Template is designed for use in the United Arab Emirates when parties need to formally end their contractual relationships, whether by mutual agreement or unilateral decision. This document is essential in the UAE business environment where proper contract termination must comply with specific provisions of the UAE Civil Code and commercial laws. The template includes all necessary elements required by UAE law, such as clear identification of parties, specific termination dates, settlement terms, and ongoing obligations. It can be customized for various types of commercial agreements and includes provisions for both amicable terminations and those arising from breach of contract. The document ensures proper documentation of the termination process, which is crucial for legal certainty and potential dispute resolution under UAE jurisdiction.

What sections should be included in a Termination Of A Contract?

1. Parties: Identification of all parties to the termination agreement, including their full legal names, addresses, and registration details as per UAE requirements

2. Background: References to the original contract being terminated, including its date, purpose, and any relevant amendments or variations

3. Definitions: Key terms used in the termination agreement, including defined terms from the original contract that remain relevant

4. Termination Date: Clear specification of when the termination takes effect, including any notice periods required under UAE law

5. Grounds for Termination: Specific reasons for termination, whether mutual agreement or pursuant to specific contract provisions or UAE law

6. Outstanding Obligations: Details of any remaining obligations, payments, or deliverables that must be fulfilled before or after termination

7. Settlement Terms: Financial and operational arrangements for settling accounts and obligations between the parties

8. Return of Property: Requirements for returning any physical or intellectual property, documents, or materials

9. Confidentiality: Ongoing obligations regarding confidential information post-termination

10. Release and Waiver: Mutual release of claims and liabilities, subject to UAE law requirements

11. Governing Law and Jurisdiction: Confirmation of UAE law as governing law and specification of jurisdiction for disputes

What sections are optional to include in a Termination Of A Contract?

1. Transition Arrangements: Used when there needs to be a handover period or transition of services/products to another provider

2. Non-Compete and Non-Solicitation: Include when post-termination restrictions are necessary and enforceable under UAE law

3. Public Announcements: Include for high-profile contracts where public communications about the termination need to be coordinated

4. Survival Clauses: Used to specify which provisions of the original contract survive termination

5. Third Party Rights: Include when termination affects rights or obligations of third parties

6. Insurance and Indemnities: Used when specific risks need to be addressed post-termination

7. Dispute Resolution: Include detailed alternative dispute resolution procedures when parties prefer specific mechanisms beyond court jurisdiction

What schedules should be included in a Termination Of A Contract?

1. Schedule 1 - Original Contract: Copy or summary of the original contract being terminated

2. Schedule 2 - Settlement Statement: Detailed breakdown of final payments, credits, or debits between parties

3. Schedule 3 - Handover Schedule: Timeline and checklist for the return or transfer of assets, documents, and responsibilities

4. Schedule 4 - Outstanding Matters: List of pending items, obligations, or issues to be resolved

5. Appendix A - Required Notices: Copies of formal notices or communications required for termination

6. Appendix B - Release Documentation: Forms or certificates confirming mutual release of obligations

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

Cancellation Letter

Sector

Sales

Cost

Free to use
Relevant legal definitions






























Clauses






























Relevant Industries

Construction

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Legal

Procurement

Finance

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Commercial

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Project Management

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Corporate Governance

Relevant Roles

Legal Counsel

Contract Manager

Procurement Manager

Business Development Manager

Chief Executive Officer

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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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