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Commercial Contract for United Arab Emirates

Commercial Contract Template for United Arab Emirates

A comprehensive commercial contract template designed for use in the United Arab Emirates, incorporating provisions that comply with UAE Federal Laws including the Civil Code and Commercial Transactions Law. This document serves as a framework for various commercial relationships between businesses, covering essential elements such as terms of trade, payment conditions, delivery obligations, and risk allocation. The contract includes specific provisions required under UAE law while maintaining flexibility to accommodate different types of commercial transactions and industry-specific requirements.

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What is a Commercial Contract?

This Commercial Contract template is designed for use in the United Arab Emirates business environment, where it serves as a fundamental document for establishing and managing business relationships between commercial entities. It is particularly relevant for transactions governed by UAE Federal Law No. 5 of 1985 (Civil Code) and Federal Law No. 18 of 1993 (Commercial Transactions Law). The document is structured to accommodate various commercial arrangements including supply agreements, service contracts, distribution agreements, and other business-to-business relationships. It includes mandatory provisions required under UAE law while maintaining the flexibility to be customized for specific commercial needs and industry requirements. The template is designed to provide clear allocation of rights and responsibilities while ensuring enforceability within the UAE legal framework.

What sections should be included in a Commercial Contract?

1. Parties: Identification of the contracting parties with full legal names, addresses, and registration details as per UAE requirements

2. Background: Context of the agreement and commercial relationship between the parties

3. Definitions: Defined terms used throughout the agreement for clarity and consistency

4. Scope of Agreement: Clear outline of the commercial arrangement and subject matter of the contract

5. Term and Commencement: Duration of the agreement and effective date

6. Commercial Terms: Core commercial provisions including pricing, payment terms, and delivery obligations

7. Obligations of the Parties: Detailed responsibilities and commitments of each party

8. Representations and Warranties: Standard commercial warranties and representations required under UAE law

9. Termination: Grounds and process for termination, including notice requirements

10. Liability and Indemnification: Allocation of risks and responsibilities between parties

11. Confidentiality: Protection of confidential information and trade secrets

12. Governing Law and Jurisdiction: Explicit statement of UAE law governance and jurisdiction

13. Notices: Format and method of delivering official communications

14. Execution: Signature blocks and execution requirements as per UAE law

What sections are optional to include in a Commercial Contract?

1. Force Majeure: Include when parties want specific provisions for unforeseeable events beyond their control

2. Intellectual Property: Required when the agreement involves IP rights, licenses, or technology transfer

3. Non-Competition: Add when protecting business interests from competitive activities is necessary

4. Insurance: Include when specific insurance requirements need to be maintained

5. Change Control: Necessary for long-term contracts where scope or specifications might change

6. Assignment and Subcontracting: Include when transfer of rights or subcontracting needs to be regulated

7. Dispute Resolution: Add detailed arbitration or mediation procedures if preferred over court proceedings

8. Compliance with Laws: Include specific compliance obligations for regulated industries or activities

What schedules should be included in a Commercial Contract?

1. Schedule 1 - Services/Products Specification: Detailed description of services or products being provided

2. Schedule 2 - Pricing and Payment Terms: Detailed pricing structure, payment schedules, and financial terms

3. Schedule 3 - Service Levels: Performance metrics and service level requirements if applicable

4. Schedule 4 - Key Personnel: List of key personnel responsible for contract execution if relevant

5. Schedule 5 - Implementation Timeline: Project milestones and delivery schedules if applicable

6. Appendix A - Required Documentation: List of required certificates, permits, or regulatory documents

7. Appendix B - Technical Specifications: Detailed technical requirements or specifications

8. Appendix C - Form of Notice: Template forms for official notices under the agreement

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

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions








































Clauses






































Relevant Industries

Retail

Manufacturing

Technology

Professional Services

Construction

Healthcare

Financial Services

Logistics and Transportation

Real Estate

Energy

Telecommunications

Hospitality

Consumer Goods

Media and Entertainment

Education

Relevant Teams

Legal

Commercial

Finance

Procurement

Operations

Risk and Compliance

Business Development

Sales

Supply Chain

Project Management

Account Management

Relevant Roles

Legal Counsel

Commercial Director

Chief Executive Officer

Chief Financial Officer

Procurement Manager

Contract Manager

Business Development Manager

Operations Director

Risk Manager

Compliance Officer

General Manager

Sales Director

Supply Chain Manager

Project Manager

Account 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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