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Third Party Payment Contract
I need a Third Party Payment Contract under UAE law where our parent company in Dubai will make quarterly payments of AED 500,000 to our supplier starting from January 2025, on behalf of our subsidiary company.
1. Parties: Identification of all parties: the principal debtor, the creditor/beneficiary, and the third-party payer
2. Background: Context of the agreement, relationship between parties, and reason for third-party payment arrangement
3. Definitions: Key terms used throughout the agreement, including payment-related terminology
4. Payment Obligations: Details of payment amounts, currency, timing, and conditions precedent to payment
5. Payment Mechanism: Specific process and method of payment, including banking details and transaction procedures
6. Representations and Warranties: Statements of fact and assurances from each party regarding their capacity and authority
7. Rights and Obligations: Detailed responsibilities of each party, including notification requirements and record-keeping
8. Default and Remedies: Consequences of payment default and available remedies for affected parties
9. Term and Termination: Duration of the agreement and circumstances under which it can be terminated
10. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction for dispute resolution
11. Notices: Process and requirements for formal communications between parties
12. General Provisions: Standard boilerplate clauses including severability, entire agreement, and amendments
1. Electronic Payment Provisions: Required when payments will be made electronically, including specific security and authentication requirements
2. Currency Exchange: Needed when payments involve multiple currencies or exchange rate considerations
3. Anti-Money Laundering Compliance: Detailed compliance provisions required for high-value or frequent payments
4. Security and Guarantees: Required when additional security or guarantees are provided for the payment obligations
5. Force Majeure: Optional clause for circumstances preventing payment performance, particularly relevant for long-term arrangements
6. Confidentiality: Required when sensitive financial or commercial information is involved
7. Step-In Rights: Optional provisions allowing other parties to step in and make payments in case of default
8. Insurance Requirements: Needed when specific insurance coverage is required for payment obligations
1. Payment Schedule: Detailed schedule of payment amounts, dates, and recipients
2. Bank Account Details: Specified bank account information for all parties
3. Form of Payment Notice: Template for payment notifications and confirmations
4. Compliance Documentation: Required forms and documents for regulatory compliance
5. Security Documents: If applicable, details of any security or guarantees provided
6. Contact Details: List of authorized representatives and contact information for all parties
7. Payment Procedures: Detailed operational procedures for making and processing payments
Authors
Banking & Financial Services
International Trade
Real Estate & Construction
Manufacturing
Retail & Consumer Goods
Energy & Resources
Transportation & Logistics
Professional Services
Healthcare
Hospitality & Tourism
Legal
Finance
Treasury
Compliance
Procurement
Risk Management
Commercial Operations
Accounts Payable
Banking Operations
Contract Administration
Chief Financial Officer
Finance Director
Treasury Manager
Financial Controller
Accounts Payable Manager
Legal Counsel
Compliance Officer
Commercial Director
Procurement Manager
Contract Manager
Risk Manager
Company Secretary
Banking Relationship Manager
Finance Operations Manager
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