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The Business Management Contract serves as a crucial legal instrument in the United Arab Emirates' business environment, used when a company or business owner seeks to delegate operational control to professional management. This document is essential for businesses operating in both mainland UAE and free zones, providing a comprehensive framework for management services while ensuring compliance with UAE Federal Law No. 5 of 1985 (Civil Code) and other relevant commercial legislation. The contract typically details scope of authority, operational responsibilities, performance expectations, compensation structures, and reporting requirements, while incorporating necessary provisions for UAE business practices and regulatory compliance. It's particularly relevant for businesses seeking professional management expertise, during ownership transitions, or when implementing corporate governance structures.

1. Parties: Identification of the company/owner and the management service provider, including full legal names, addresses, and registration details

2. Background: Context of the agreement, business purpose, and brief description of why the management services are required

3. Definitions: Key terms used throughout the agreement, including specific UAE legal and business terminology

4. Appointment and Term: Formal appointment of the manager/management company, duration of the contract, and renewal terms

5. Scope of Services: Detailed description of management services to be provided, including specific responsibilities and deliverables

6. Authority and Limitations: Extent and limitations of management's decision-making power and authority to represent the business

7. Fees and Payment Terms: Management fees, payment schedule, expenses, and any performance-based compensation

8. Obligations of the Manager: Specific duties, responsibilities, and standards of performance expected from the management

9. Obligations of the Company: Company's responsibilities, including provision of information, resources, and support

10. Reporting Requirements: Regular reporting obligations, financial statements, and performance metrics

11. Confidentiality: Protection of confidential information and trade secrets

12. Intellectual Property: Ownership and usage rights of IP developed during the management period

13. Termination: Grounds for termination, notice periods, and consequences of termination

14. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction for dispute resolution

15. General Provisions: Standard clauses including notices, amendments, waiver, and severability