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Business Settlement Agreement for United Arab Emirates

Business Settlement Agreement Template for United Arab Emirates

A comprehensive legal document governed by UAE law that formalizes the resolution of business disputes or commercial disagreements between parties. This agreement outlines the terms and conditions of settlement, including financial compensation, mutual releases, and ongoing obligations. It incorporates specific requirements under UAE Federal Laws, including the Civil Code and Commercial Transactions Law, and can be executed in both Arabic and English to ensure enforceability in UAE courts. The document provides a legally binding framework for parties to conclude their disputes while maintaining compliance with local regulatory requirements and business practices.

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What is a Business Settlement Agreement?

The Business Settlement Agreement serves as a crucial legal instrument in the United Arab Emirates for resolving commercial disputes between business entities without resorting to litigation. This document is particularly valuable when parties wish to maintain business relationships while addressing specific disagreements or when seeking to avoid the time and costs associated with court proceedings. It must comply with UAE Federal Law No. 5 of 1985 (Civil Code) and other relevant commercial legislation, making it essential to include specific provisions required under UAE law. The agreement typically encompasses financial settlements, mutual releases, confidentiality provisions, and future conduct terms, providing a comprehensive framework for dispute resolution. The Business Settlement Agreement can be used across various industries and is particularly relevant in situations involving contract disputes, partnership dissolutions, or commercial disagreements where parties seek an amicable resolution.

What sections should be included in a Business Settlement Agreement?

1. Parties: Identification of all parties to the settlement, including full legal names, addresses, and registration details for corporate entities

2. Background: Recitals explaining the context of the dispute or circumstances leading to the settlement

3. Definitions: Definitions of key terms used throughout the agreement

4. Settlement Terms: Core settlement provisions including payment amounts, payment schedule, and other key obligations

5. Release of Claims: Mutual or unilateral releases of claims related to the settled matters

6. Confidentiality: Obligations regarding confidentiality of the settlement terms and related information

7. Non-Admission of Liability: Statement that the settlement does not constitute admission of liability by any party

8. Representations and Warranties: Basic representations about authority to enter agreement and binding nature of obligations

9. Governing Law and Jurisdiction: Specification of UAE law as governing law and designation of competent courts

10. Entire Agreement: Integration clause confirming the agreement represents the complete understanding between parties

11. Execution: Signature blocks and execution requirements compliant with UAE law

What sections are optional to include in a Business Settlement Agreement?

1. Non-Disparagement: Mutual obligations not to make negative statements about other parties, particularly relevant in high-profile disputes

2. Future Cooperation: Terms regarding ongoing business relationship or future cooperation, if parties intend to maintain relations

3. Tax Implications: Allocation of tax responsibilities and implications of settlement payments

4. Insurance Matters: Provisions relating to insurance claims or coverage if relevant to the settlement

5. Third Party Rights: Provisions addressing rights of third parties affected by the settlement

6. Return of Property: Requirements for returning documents, materials, or property between parties

7. Regulatory Compliance: Specific provisions ensuring compliance with relevant UAE regulatory requirements

8. Force Majeure: Provisions for unforeseen circumstances affecting settlement implementation

What schedules should be included in a Business Settlement Agreement?

1. Payment Schedule: Detailed breakdown of settlement payments, including amounts, dates, and payment methods

2. Released Claims: Comprehensive list of specific claims being released under the settlement

3. Settlement Assets: Inventory of any assets or properties being transferred as part of settlement

4. Required Actions: Timeline and specifics of actions to be taken by parties to implement settlement

5. Corporate Authorizations: Copies of corporate approvals and authorizations for settlement

6. Related Agreements: List and copies of any related agreements referenced in main agreement

7. Form of Release: Template of any additional release documents to be executed

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions








































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Relevant Industries

Banking and Financial Services

Real Estate and Construction

Manufacturing and Industrial

Retail and Consumer Goods

Technology and Communications

Healthcare and Pharmaceuticals

Energy and Natural Resources

Professional Services

Hospitality and Tourism

Trading and Distribution

Media and Entertainment

Transportation and Logistics

Relevant Teams

Legal

Finance

Compliance

Risk Management

Corporate Affairs

Business Development

Commercial Operations

Executive Management

Company Secretariat

Corporate Governance

Dispute Resolution

Relevant Roles

Chief Executive Officer

Chief Legal Officer

General Counsel

Legal Director

Commercial Director

Chief Financial Officer

Finance Director

Business Development Director

Managing Director

Company Secretary

Compliance Officer

Risk Manager

Corporate Counsel

Legal Manager

Settlement Officer

Dispute Resolution Manager

Contract 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,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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