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Contract Cancellation Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

Contract Cancellation Agreement

"I need a Contract Cancellation Agreement to terminate a software development agreement with TechPro Solutions LLC, effective March 1, 2025, including provisions for the return of source code and settlement of outstanding milestone payments."

Document background
The Contract Cancellation Agreement is a crucial legal instrument used in the United Arab Emirates when parties mutually agree to terminate their contractual relationship or when termination is required due to specific circumstances. This document, governed by UAE Civil Code and related commercial laws, serves to formally document the termination process, protect parties' interests, and prevent future disputes. It typically includes provisions for the settlement of outstanding obligations, return of properties or documents, mutual releases, and any surviving obligations. The agreement is particularly important in the UAE business environment where formal documentation of contractual relationships and their termination is essential for legal certainty and compliance with local regulations.
Suggested Sections

1. Parties: Identification of all parties to the cancellation agreement, including their full legal names, addresses, and registration details if companies

2. Background: Details of the original contract being cancelled, its date, purpose, and reason for cancellation

3. Definitions: Definitions of key terms used in the cancellation agreement

4. Cancellation and Termination: Express agreement to cancel the original contract and the effective date of cancellation

5. Settlement of Outstanding Obligations: Details of any payments, refunds, or obligations to be settled between the parties

6. Mutual Release: Mutual release of claims and liabilities related to the original contract

7. Return of Property: Provisions for returning any physical or intellectual property exchanged under the original contract

8. Governing Law and Jurisdiction: Confirmation that UAE law governs the cancellation agreement and designation of courts

Optional Sections

1. Confidentiality: Required when parties need to maintain confidentiality about the original contract or its cancellation

2. Surviving Obligations: Used when certain obligations from the original contract need to survive the cancellation

3. Third Party Rights: Needed when the cancellation affects rights of third parties or requires their acknowledgment

4. Tax Implications: Include when there are significant tax consequences of the cancellation that need to be addressed

5. Dispute Resolution: Optional alternative dispute resolution mechanisms for any conflicts arising from the cancellation

6. Partial Cancellation: Required when only specific parts of the original contract are being cancelled while others remain in force

Suggested Schedules

1. Schedule 1 - Original Contract: Copy or details of the contract being cancelled

2. Schedule 2 - Settlement Statement: Detailed breakdown of any financial settlements, including payments made and outstanding

3. Schedule 3 - Property Register: List of any physical or intellectual property to be returned or transferred

4. Schedule 4 - Release Conditions: Specific conditions or actions required for the release of obligations to take effect

5. Appendix A - Powers of Attorney: If applicable, documentation proving authority to execute the cancellation

Authors

Alex Denne

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

Relevant legal definitions
























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Relevant Industries

Real Estate

Construction

Financial Services

Technology

Retail

Manufacturing

Professional Services

Healthcare

Education

Hospitality

Energy

Transportation

Trading

Media and Entertainment

Relevant Teams

Legal

Contracts

Commercial

Finance

Operations

Procurement

Risk and Compliance

Business Development

Project Management

Administrative

Relevant Roles

Legal Counsel

Contract Manager

Business Development Manager

Chief Executive Officer

Chief Financial Officer

Commercial Director

Project Manager

Operations Manager

Procurement Manager

Risk Manager

Compliance Officer

General Manager

Department Head

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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