The Terms of Business Agreement serves as a foundational document for establishing commercial relationships in the United Arab Emirates. It is specifically designed for businesses operating within the UAE's unique legal framework, which combines civil law principles with Sharia considerations. This agreement is essential for companies providing services in the UAE market, whether operating from mainland UAE, free zones, or as international entities serving UAE clients. The document incorporates mandatory provisions required under UAE law, including Federal Law No. 5 of 1985 (Civil Code) and Federal Law No. 18 of 1993 (Commercial Transactions Law), while maintaining flexibility to accommodate specific business requirements. The Terms of Business Agreement typically covers service scope, payment terms, regulatory compliance, and dispute resolution, with particular attention to UAE-specific legal requirements and business practices.
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1. Parties: Identification of the contracting parties with full legal names and addresses
2. Background: Context of the business relationship and purpose of the agreement
3. Definitions and Interpretation: Key terms used throughout the agreement and rules of interpretation
4. Scope of Services: Detailed description of services to be provided
5. Fees and Payment Terms: Pricing structure, payment terms, and invoicing procedures
6. Term and Termination: Duration of the agreement and circumstances for termination
7. Obligations of Service Provider: Key responsibilities and commitments of the service provider
8. Client Obligations: Key responsibilities and commitments of the client
9. Confidentiality: Protection and handling of confidential information
10. Intellectual Property Rights: Ownership and usage rights of intellectual property
11. Liability and Indemnification: Limitation of liability and indemnification provisions
12. Force Majeure: Handling of events beyond reasonable control
13. Governing Law and Jurisdiction: UAE law as governing law and jurisdiction for disputes
14. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment
1. Data Protection: Required when personal data processing is involved, addressing UAE data protection requirements
2. Compliance with UAE Laws: Specific section needed when dealing with regulated industries or activities
3. Anti-Money Laundering: Required for financial services or real estate related agreements
4. Electronic Communications: Added when services involve significant electronic transactions or communications
5. Service Levels: Include when specific performance metrics need to be maintained
6. Insurance: Required when services involve significant operational risks
7. Non-Competition: Added when protecting business interests from competitive activities
8. Shariah Compliance: Required when dealing with Islamic financial institutions or products
1. Schedule 1 - Service Description: Detailed specification of services to be provided
2. Schedule 2 - Fee Schedule: Detailed breakdown of fees, rates, and charging mechanisms
3. Schedule 3 - Service Levels: Specific performance metrics and service level requirements
4. Schedule 4 - Key Personnel: Details of key staff members responsible for service delivery
5. Schedule 5 - Data Processing Terms: Detailed terms for handling personal data if applicable
6. Appendix A - Contact Details: Contact information for key personnel and notices
7. Appendix B - Required Documents: List of documents required for regulatory compliance
8. Appendix C - Compliance Procedures: Specific procedures for maintaining regulatory compliance
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