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Settlement Agreement And Release Of Claims for United Arab Emirates

Settlement Agreement And Release Of Claims Template for United Arab Emirates

A comprehensive legal document governed by UAE law that formalizes the resolution of disputes between parties by setting out agreed terms of settlement and providing for mutual release of claims. The agreement must comply with UAE Civil Code requirements regarding settlements (sulh) and includes specific provisions for payment terms, release of claims, and confidentiality obligations. The document serves as a binding contract under UAE law, providing finality to disputes and preventing future litigation on settled matters, while incorporating necessary provisions for enforcement under UAE jurisdiction.

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What is a Settlement Agreement And Release Of Claims?

The Settlement Agreement And Release of Claims is a crucial legal document used in the UAE when parties wish to formally resolve disputes and prevent future litigation on settled matters. It is commonly employed across various sectors for resolving commercial, employment, construction, and other types of disputes. The document must comply with UAE Civil Code requirements, particularly Articles 722-733 regarding settlements (sulh), and should be drafted to ensure enforceability in UAE courts. It typically includes detailed settlement terms, payment provisions, comprehensive release language, and confidentiality obligations. This type of agreement is particularly important in the UAE business environment where maintaining relationships while resolving disputes amicably is highly valued.

What sections should be included in a Settlement Agreement And Release Of Claims?

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

2. Background: Recitals describing the dispute or claims being settled, relevant history, and parties' intention to settle

3. Definitions: Key terms used throughout the agreement, including 'Claims', 'Effective Date', and specific terms relevant to the dispute

4. Settlement Sum: Details of the settlement amount, payment terms, method, and timing of payments

5. Release of Claims: Comprehensive release language specifying which claims are being released, in compliance with UAE Civil Code requirements

6. Confidentiality: Obligations regarding confidentiality of the settlement terms and underlying dispute

7. Non-Admission: Statement that the settlement does not constitute admission of liability by any party

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

9. Entire Agreement: Confirmation that this document represents the entire agreement between parties regarding the settled matters

10. Execution: Signature requirements and execution formalities in accordance with UAE law

What sections are optional to include in a Settlement Agreement And Release Of Claims?

1. Non-Disparagement: Used when parties wish to prevent negative statements about each other after settlement

2. Return of Property: Include when settlement involves return of documents, equipment, or other property

3. Tax Implications: Required when settlement has significant tax consequences that need to be addressed

4. Future Cooperation: Used when parties need to specify ongoing obligations or cooperation after settlement

5. Insurance Claims: Include when settlement involves insurance claims or insurers' rights

6. Representations and Warranties: Added when specific assurances from parties are required regarding their authority or claims

7. Dispute Resolution: Optional alternative dispute resolution mechanisms for future disputes about the settlement

8. Third Party Rights: Include when settlement affects rights of third parties not direct parties to the agreement

What schedules should be included in a Settlement Agreement And Release Of Claims?

1. Schedule 1 - Payment Schedule: Detailed breakdown of payment installments, dates, and methods if payment is not made in one lump sum

2. Schedule 2 - Released Claims: Comprehensive list of specific claims being released under the agreement

3. Schedule 3 - Related Proceedings: List of all legal proceedings to be discontinued as part of the settlement

4. Schedule 4 - Required Actions: List of specific actions parties must take to implement the settlement

5. Appendix A - Related Documents: Copies of relevant documents referenced in the settlement agreement

6. Appendix B - Form of Release: Template of any additional release documents required to be executed

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






























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Relevant Industries

Construction

Real Estate

Banking and Financial Services

Insurance

Manufacturing

Retail

Technology

Healthcare

Energy and Resources

Transportation and Logistics

Professional Services

Education

Telecommunications

Hospitality

Relevant Teams

Legal

Compliance

Risk Management

Human Resources

Finance

Executive Leadership

Operations

Commercial

Project Management

Business Development

Corporate Governance

Relevant Roles

Legal Counsel

Chief Legal Officer

Compliance Officer

Risk Manager

Chief Executive Officer

Chief Financial Officer

Human Resources Director

Commercial Director

Claims Manager

Contract Manager

Project Manager

Business Development Manager

Operations Manager

General Manager

Company Secretary

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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