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Civil Settlement Agreement for United Arab Emirates

Civil Settlement Agreement Template for United Arab Emirates

A Civil Settlement Agreement under UAE law is a formal legal document that records the terms and conditions of a settlement reached between parties to resolve a civil dispute. The agreement is governed by the UAE Civil Code (Federal Law No. 5 of 1985) and must comply with UAE federal laws and regulations. It includes essential provisions such as settlement terms, payment arrangements, mutual releases, and governing law clauses. The document serves as a binding contract that effectively terminates existing disputes and prevents future claims related to the settled matter, providing parties with legal certainty under UAE jurisdiction.

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What is a Civil Settlement Agreement?

The Civil Settlement Agreement is a crucial legal instrument used in the United Arab Emirates for resolving civil disputes between parties without the need for court litigation or to end existing legal proceedings. This document type is governed by UAE Civil Code (Federal Law No. 5 of 1985) and must adhere to specific requirements under UAE law to be enforceable. It is commonly used across various sectors when parties wish to reach an amicable resolution to their disputes, whether these involve commercial transactions, property matters, or other civil issues. The agreement typically includes comprehensive terms covering settlement amounts, payment schedules, mutual releases, and future obligations. Use of a Civil Settlement Agreement is particularly advantageous in the UAE context as it provides a formal framework for dispute resolution while considering local legal and cultural aspects, including Sharia law principles where applicable.

What sections should be included in a Civil Settlement Agreement?

1. Parties: Detailed identification of all parties to the settlement, including full legal names, addresses, and registration details if corporate entities

2. Background: Recitals explaining the dispute's history, any existing legal proceedings, and the parties' intention to settle

3. Definitions: Definitions of key terms used throughout the agreement, ensuring clarity in both English and Arabic contexts

4. Settlement Terms: Core settlement provisions including payment terms, mutual releases, and specific obligations of each party

5. Payment Provisions: Detailed payment arrangements including amounts, timeframes, and payment methods

6. Mutual Release: Comprehensive release of claims between the parties related to the dispute

7. Representations and Warranties: Standard representations about authority to enter agreement and binding nature of obligations

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

9. Notices: Process for serving formal notices under the agreement

10. Execution: Signature blocks and execution formalities compliant with UAE requirements

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

1. Confidentiality: Provisions for maintaining confidentiality of the settlement terms and dispute details - used when parties want to keep the settlement private

2. Non-Admission of Liability: Statement that the settlement does not constitute admission of liability - used in disputed claims

3. Tax Implications: Provisions addressing tax consequences of the settlement - used when settlement involves significant financial components

4. Withdrawal of Legal Proceedings: Procedures for withdrawing any ongoing legal proceedings - used when there are active court cases

5. Future Cooperation: Terms for ongoing relationship between parties - used when parties will continue to interact post-settlement

6. Insurance and Indemnity: Insurance requirements and indemnification provisions - used when ongoing risks need to be addressed

7. Public Announcements: Protocol for making public statements about the settlement - used in high-profile cases

What schedules should be included in a Civil Settlement Agreement?

1. Payment Schedule: Detailed breakdown of payment amounts, dates, and methods if settlement involves installment payments

2. Release Documentation: Forms of release documents to be executed as part of settlement

3. Existing Proceedings: List of all legal proceedings to be withdrawn or terminated

4. Settlement Assets: Inventory of any assets being transferred as part of settlement

5. Required Corporate Approvals: Copies of board resolutions or other corporate authorizations

6. Form of Notice of Discontinuance: Template for court filings to discontinue legal proceedings

7. Related Agreements: Copies of any related agreements referenced in the settlement

Authors

Alex Denne

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

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions
































Clauses






























Relevant Industries

Real Estate

Construction

Banking and Financial Services

Insurance

Manufacturing

Retail

Healthcare

Education

Technology

Transportation and Logistics

Energy

Professional Services

Hospitality

Trading

Relevant Teams

Legal

Compliance

Risk Management

Finance

Operations

Commercial

Contract Administration

Corporate Governance

Business Development

Project Management

Relevant Roles

Legal Counsel

Chief Legal Officer

Compliance Officer

Risk Manager

Chief Executive Officer

Chief Financial Officer

Commercial Director

Contract Manager

Claims Manager

Dispute Resolution Manager

Business Development Manager

Project Manager

Operations Director

Company Secretary

General 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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