The Tripartite Settlement Agreement is a crucial legal instrument used in the UAE when three parties need to resolve complex disputes or formalize multi-party arrangements. It is particularly relevant in situations involving construction disputes, complex financial arrangements, or commercial relationships where multiple parties have interconnected rights and obligations. The agreement must comply with UAE Civil Code requirements, particularly Articles 722-733 regarding settlements, and should be drafted considering both onshore UAE law and, where relevant, the DIFC/ADGM free zone jurisdictions. This document type is commonly used when parties wish to achieve a final and binding resolution of their disputes, including mutual releases and clearly defined payment or performance obligations. The agreement should be comprehensive enough to address all outstanding issues while being precise enough to be enforceable under UAE law.
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1. Parties: Identification and details of all three parties to the agreement
2. Background: Recitals explaining the context of the dispute or circumstances leading to the settlement
3. Definitions: Definitions of key terms used throughout the agreement
4. Settlement Terms: Core terms of the settlement including obligations of each party
5. Payment Provisions: Details of any monetary settlements, payment terms, and mechanisms
6. Mutual Releases: Comprehensive releases between all parties
7. Representations and Warranties: Standard representations and warranties from each party
8. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction details
9. Notices: Process and details for serving notices between parties
10. General Provisions: Standard boilerplate clauses including severability, entire agreement, etc.
1. Confidentiality: Provisions for maintaining confidentiality of the settlement terms and related information
2. Continuing Obligations: Any ongoing obligations that survive the settlement
3. Tax Provisions: Specific provisions dealing with tax implications of the settlement
4. Non-Disparagement: Provisions preventing parties from making negative statements about each other
5. Further Assurance: Obligations to execute additional documents or take further actions if needed
6. Costs: Allocation of legal and other costs related to the settlement
7. Force Majeure: Provisions dealing with unforeseen circumstances affecting settlement implementation
1. Payment Schedule: Detailed breakdown of payment amounts, dates, and methods
2. Timeline of Events: Chronological listing of relevant events leading to the dispute/settlement
3. Settlement Calculations: Detailed calculations of settlement amounts if complex
4. Form of Release: Template of any separate release documents to be executed
5. Related Agreements: List and copies of any related agreements referenced in the settlement
6. Contact Details: Detailed contact information for all parties and their representatives
7. Required Actions: Schedule of specific actions to be taken by each party as part of the settlement
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Professional Services
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Legal
Finance
Compliance
Risk Management
Commercial
Project Management
Construction Management
Claims
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