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Model Contract Agreement for United Arab Emirates

Model Contract Agreement Template for United Arab Emirates

A comprehensive template agreement designed for use in the United Arab Emirates, incorporating all essential elements required under UAE Civil Code (Federal Law No. 5 of 1985) and relevant commercial legislation. This document serves as a standardized foundation for various commercial relationships, featuring adaptable clauses that comply with both UAE law and Sharia principles. It includes provisions for key commercial terms, risk allocation, dispute resolution, and general obligations while maintaining flexibility for customization based on specific business needs and requirements of UAE free zones where applicable.

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What is a Model Contract Agreement?

The Model Contract Agreement serves as a standardized template for commercial relationships in the United Arab Emirates, designed to comply with UAE Civil Code, Commercial Transactions Law, and Sharia principles. This document is particularly useful for businesses establishing new commercial relationships or standardizing their contracting processes in the UAE market. It incorporates essential provisions required by UAE law while maintaining flexibility for customization across different industries and transaction types. The agreement includes comprehensive sections covering contract formation, performance, termination, and dispute resolution, all aligned with UAE legal requirements. It is especially valuable for companies seeking to ensure their contracts meet local legal standards while following international best practices in contract drafting.

What sections should be included in a Model Contract Agreement?

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

2. Background: Context and purpose of the agreement, including any relevant history or relationships between the parties

3. Definitions and Interpretation: Definitions of key terms and interpretation rules, including reference to UAE law principles

4. Scope of Agreement: Detailed description of the subject matter and scope of the contract

5. Term and Duration: Contract duration, commencement date, and any renewal provisions

6. Rights and Obligations: Core responsibilities and rights of each party under the agreement

7. Financial Terms: Payment terms, amounts, and methods, ensuring compliance with Sharia principles

8. Representations and Warranties: Standard representations and warranties from each party

9. Confidentiality: Provisions for protecting confidential information and trade secrets

10. Liability and Indemnification: Scope of liability, limitations, and indemnification obligations

11. Force Majeure: Events excusing performance, aligned with UAE law requirements

12. Termination: Grounds and procedures for contract termination

13. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction for disputes

14. Notices: Process and requirements for formal communications between parties

15. General Provisions: Standard boilerplate clauses including severability, entire agreement, and amendments

What sections are optional to include in a Model Contract Agreement?

1. Intellectual Property Rights: Required when the agreement involves IP creation, licensing, or transfer

2. Data Protection: Necessary when personal data processing is involved, considering UAE data protection requirements

3. Insurance: Include when specific insurance coverage is required from either party

4. Performance Guarantees: Required when specific performance standards or guarantees are necessary

5. Change Control: Include for contracts where scope or specifications may need modification

6. Anti-Corruption: Important for international contracts or government-related agreements

7. Assignment and Subcontracting: Include when transfer of rights or subcontracting needs to be addressed

8. Non-Competition: Required when restricting competitive activities is necessary

9. Step-In Rights: Include for critical service contracts where continuity is essential

10. Dispute Resolution: Optional detailed procedures for arbitration or mediation before court proceedings

What schedules should be included in a Model Contract Agreement?

1. Schedule 1 - Services/Deliverables: Detailed description of services or deliverables to be provided

2. Schedule 2 - Pricing and Payment Terms: Detailed breakdown of pricing, payment schedules, and calculations

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

4. Schedule 4 - Key Personnel: Details of key individuals involved in contract performance

5. Schedule 5 - Technical Specifications: Technical requirements and specifications

6. Schedule 6 - Form of Notice: Template forms for various notices under the agreement

7. Schedule 7 - Change Control Procedure: Detailed process for implementing and documenting changes

8. Schedule 8 - Data Processing Requirements: Specific data handling and protection requirements

9. Appendix A - Required Documents: Copies of licenses, permits, and other required documentation

10. Appendix B - Insurance Requirements: Detailed insurance coverage requirements and certificates

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

Technology

Construction

Manufacturing

Professional Services

Retail

Healthcare

Financial Services

Real Estate

Energy

Transportation

Telecommunications

Education

Hospitality

Media and Entertainment

Import/Export

Relevant Teams

Legal

Procurement

Commercial

Operations

Business Development

Compliance

Risk Management

Finance

Sales

Supply Chain

Contract Administration

Corporate Affairs

Relevant Roles

Legal Counsel

Contract Manager

Commercial Director

Business Development Manager

Procurement Manager

Operations Director

Chief Legal Officer

Compliance Officer

Project Manager

General Manager

CEO

CFO

Risk Manager

Supply Chain Manager

Sales Director

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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