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Money Owed Contract Agreement for United Arab Emirates

Money Owed Contract Agreement Template for United Arab Emirates

This document is a legally binding agreement governed by UAE law that formalizes and documents a debt obligation between parties. It incorporates provisions compliant with both UAE Civil Code and Sharia principles, establishing clear terms for debt repayment, including payment schedules, potential interest (where permissible under UAE law), and consequences of default. The agreement includes necessary safeguards and enforcement mechanisms recognized by UAE courts, while ensuring compliance with local regulations regarding debt documentation and collection procedures.

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What is a Money Owed Contract Agreement?

The Money Owed Contract Agreement is essential for businesses and individuals operating in the UAE who need to formally document debt obligations. This agreement is particularly relevant when parties need to establish clear, enforceable terms for debt repayment, whether arising from business transactions, loans, or other financial obligations. The document must comply with UAE Civil Code (Federal Law No. 5 of 1985) and consider Sharia principles, particularly regarding interest calculations. It's commonly used in scenarios ranging from business-to-business credit arrangements to individual loan agreements, providing a structured framework for debt acknowledgment, repayment terms, and enforcement mechanisms recognized by UAE courts.

What sections should be included in a Money Owed Contract Agreement?

1. Parties: Identification and details of the creditor and debtor, including full legal names, addresses, and registration details if companies

2. Background: Context of the debt, including origin of the debt and any pre-existing relationships or agreements

3. Definitions: Key terms used throughout the agreement, including 'Debt Amount', 'Interest Rate' (if applicable), 'Payment Date', etc.

4. Acknowledgment of Debt: Clear statement of the debt amount and debtor's acknowledgment of the obligation

5. Payment Terms: Detailed payment schedule, including amount, frequency, and method of payments

6. Interest and Charges: Details of any applicable interest (in compliance with UAE law and Sharia principles) and administrative charges

7. Default Provisions: Consequences of missing payments and remedies available to the creditor

8. Representations and Warranties: Debtor's confirmations regarding their ability to pay and financial status

9. Governing Law and Jurisdiction: Specification of UAE law as governing law and relevant courts' jurisdiction

10. Notices: How formal communications between parties should be made and delivered

What sections are optional to include in a Money Owed Contract Agreement?

1. Security Provisions: Details of any collateral or security provided for the debt, used when security is offered

2. Guarantor Provisions: Terms applying to any guarantor of the debt, included when a guarantor is involved

3. Early Repayment: Terms for early repayment of the debt, including any applicable discounts or penalties

4. Insurance Requirements: Any insurance required to be maintained by the debtor, included for larger debts or business loans

5. Assignment: Rights to assign the debt to third parties, included when debt assignment might be contemplated

6. Force Majeure: Provisions for unforeseen circumstances affecting payment ability, included in longer-term payment arrangements

7. Confidentiality: Terms regarding confidentiality of the agreement, included for business or sensitive debts

What schedules should be included in a Money Owed Contract Agreement?

1. Payment Schedule: Detailed breakdown of payment dates, amounts, and cumulative payments

2. Security Details: Detailed description of any security or collateral provided

3. Evidence of Debt: Copies of relevant documents proving the original debt (invoices, statements, etc.)

4. Post-dated Cheques: List and details of any post-dated cheques provided as payment security

5. Guarantor Documents: Copies of guarantor identification and relevant documentation

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

Payment Agreement

Sector

Banking

Cost

Free to use
Relevant legal definitions




















Clauses
























Relevant Industries

Banking & Financial Services

Real Estate

Construction

Retail

Manufacturing

Professional Services

Healthcare

Education

Hospitality

Trading & Distribution

Technology

Small Business & Entrepreneurship

Relevant Teams

Legal

Finance

Accounts Receivable

Credit Control

Treasury

Risk Management

Compliance

Corporate Affairs

Debt Recovery

Commercial Operations

Relevant Roles

Finance Manager

Credit Controller

Legal Counsel

Chief Financial Officer

Accounts Receivable Manager

Contract Administrator

Risk Manager

Treasury Manager

Collections Specialist

Business Owner

Financial Director

Compliance Officer

Corporate Lawyer

Debt Recovery 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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