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A Deferral Agreement lets parties postpone specific payment obligations or contractual duties to a future date. In UAE business practice, these agreements help companies manage cash flow during challenging periods while maintaining their contractual relationships and avoiding default.

Under UAE Commercial Law, properly structured Deferral Agreements protect both parties' interests by clearly outlining new payment schedules, any additional fees or interest, and conditions for the deferral period. They're commonly used in real estate transactions, commercial loans, and construction projects across Dubai and Abu Dhabi when temporary financial flexibility is needed without breaking the original contract.

Consider using a Deferral Agreement when your business needs to postpone payment obligations without defaulting on the original contract. This proves especially valuable during temporary cash flow challenges, major project delays, or when adapting to unexpected market conditions in the UAE.

The agreement becomes crucial in UAE real estate transactions when buyers need extended payment terms, or in construction projects facing supply chain disruptions. It's also vital for commercial loans requiring restructuring. Using it early helps preserve business relationships, maintains legal compliance with UAE Commercial Law, and creates clear documentation of the new payment timeline before financial pressure escalates.

• Simple Payment Deferral: Basic agreements for postponing fixed payment amounts in UAE commercial transactions, typically used for straightforward vendor or supplier payments
• Staged Construction Deferral: Specialized agreements for UAE construction projects, allowing milestone payment adjustments with detailed completion criteria
• Real Estate Installment Deferral: Structured for property purchases in Dubai and Abu Dhabi, including specific provisions for registration with RERA
• Commercial Loan Restructuring: Complex agreements for corporate borrowers, incorporating Sharia-compliant financing terms and revised security arrangements

• Commercial Banks: Draft and enforce Deferral Agreements for loan restructuring, often working with Sharia compliance officers for Islamic financing arrangements
• Property Developers: Use these agreements to manage payment schedules with buyers and contractors in UAE real estate projects
• Corporate Finance Officers: Negotiate terms and manage internal approval processes for payment deferrals with creditors
• Legal Counsel: Review and customize agreement terms to ensure compliance with UAE Commercial Law and protect client interests
• Government Authorities: Oversee registration and enforcement, particularly in regulated sectors like real estate and banking

• Original Agreement Details: Gather the existing contract, payment terms, and any related correspondence between parties
• Financial Documentation: Compile current payment history, proposed new schedule, and any relevant financial statements
• Party Information: Collect updated contact details and authority confirmation for all signatories under UAE law
• Deferral Terms: Define precise payment dates, amounts, and any additional fees or interest charges
• Regulatory Requirements: Check sector-specific rules, especially for real estate (RERA) or banking transactions
• Platform Generation: Use our system to create a legally-sound agreement that includes all mandatory UAE legal elements

• Party Details: Full legal names, addresses, and authorized signatory information compliant with UAE Commercial Law
• Original Agreement: Reference to the underlying contract being deferred, including its date and key terms
• Payment Schedule: Detailed new payment dates, amounts, and any applicable interest rates under UAE Central Bank guidelines
• Default Provisions: Clear consequences for missing revised payment deadlines
• Governing Law: Explicit reference to UAE law and jurisdiction
• Force Majeure: Updated conditions reflecting current market circumstances
• Attestation: Proper witnessing requirements and signature format per UAE regulations

A Deferral Agreement differs significantly from a Contractual Agreement in both purpose and scope. While both are legally binding documents under UAE law, they serve distinct functions in business relationships.

• Primary Purpose: Deferral Agreements specifically modify payment timelines in existing contracts, while Contractual Agreements establish new obligations and terms between parties
• Legal Effect: A Deferral Agreement amends only the payment schedule of an original contract, keeping other terms intact. A Contractual Agreement creates an entirely new set of rights and obligations
• Duration: Deferral Agreements typically have a finite timeline focused on payment restructuring, while Contractual Agreements often govern longer-term business relationships
• Enforcement: Under UAE Commercial Law, Deferral Agreements require specific references to the original contract and clear payment terms, whereas Contractual Agreements need broader elements of consideration and mutual obligation