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Interim Settlement Agreement for United Arab Emirates

Interim Settlement Agreement Template for United Arab Emirates

This document serves as a temporary resolution mechanism under UAE law, providing a structured framework for parties to establish interim arrangements while working towards a final settlement of their dispute. It incorporates specific provisions required under UAE Civil Code and Commercial Law, including clear identification of parties, temporary obligations, payment terms, and preservation of rights. The agreement is designed to be enforceable in UAE courts while maintaining flexibility for parties to reach a final settlement.

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What is a Interim Settlement Agreement?

The Interim Settlement Agreement is utilized in the UAE when parties require a temporary resolution framework while working towards a comprehensive settlement of their dispute. This document type is particularly relevant in complex commercial disputes where immediate arrangements are needed to maintain business continuity or manage immediate concerns. The agreement must comply with UAE Civil Code requirements for valid settlements while clearly preserving parties' rights for final resolution. It typically includes provisions for interim payments, temporary operational arrangements, and specific obligations of all parties. The document is especially useful in situations where time is needed for due diligence, detailed negotiations, or additional approvals while maintaining stability in the business relationship.

What sections should be included in a Interim Settlement Agreement?

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

2. Background: Context of the dispute, summary of key events, and purpose of the interim settlement

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

4. Interim Arrangements: Detailed description of the temporary arrangements agreed between the parties

5. Duration: Specific timeframe for the interim settlement and conditions for extension or termination

6. Payment Terms: Details of any interim payments, payment schedule, and payment mechanisms

7. Obligations of the Parties: Specific responsibilities and commitments of each party during the interim period

8. Preservation of Rights: Clear statement that this is an interim arrangement and does not prejudice final settlement rights

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

10. Governing Law and Jurisdiction: Confirmation of UAE law as governing law and specification of relevant courts

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

1. Security Arrangements: Details of any security or guarantees required during the interim period - include if there are specific assets or obligations to be secured

2. Third Party Rights: Provisions regarding the rights of any third parties affected by the interim settlement - include if third parties are involved

3. Insurance Requirements: Specific insurance obligations during the interim period - include if relevant to the subject matter

4. Force Majeure: Provisions for unforeseen circumstances affecting the interim arrangements - include for longer interim periods

5. Assignment: Restrictions on transfer of rights under the agreement - include if there's risk of assignment

6. Costs and Expenses: Allocation of costs related to the interim settlement - include if significant costs are involved

What schedules should be included in a Interim Settlement Agreement?

1. Schedule 1 - Payment Schedule: Detailed breakdown of payment amounts, dates, and methods

2. Schedule 2 - Interim Operating Procedures: Specific procedures to be followed during the interim period

3. Schedule 3 - Security Documents: Forms of any security documents required

4. Schedule 4 - Relevant Correspondence: Key correspondence or documents referenced in the agreement

5. Schedule 5 - Power of Attorney: Any power of attorney required for implementation of the interim arrangements

6. Appendix A - Original Dispute Documents: Summary or copies of key documents relating to the underlying dispute

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

Construction

Real Estate

Banking and Finance

Trading

Manufacturing

Technology

Oil and Gas

Retail

Healthcare

Transportation and Logistics

Hospitality

Professional Services

Relevant Teams

Legal

Finance

Operations

Commercial

Risk and Compliance

Business Development

Executive Leadership

Project Management

Corporate Affairs

Treasury

Relevant Roles

Chief Executive Officer

Managing Director

Legal Counsel

Chief Legal Officer

Contract Manager

Commercial Director

Chief Financial Officer

Operations Director

Project Manager

Risk Manager

Compliance Officer

Business Development Manager

General Manager

Settlement Officer

Dispute Resolution Specialist

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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