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A Release of Claims is a legally binding agreement where one party gives up their right to pursue legal action against another party, typically in exchange for some form of compensation. In UAE business practice, these documents help resolve disputes definitively, aligning with local civil transaction laws and Sharia principles of conflict resolution.

Companies and individuals across the Emirates use releases to formally settle employment disputes, personal injury cases, or commercial disagreements. Once signed, the release prevents future lawsuits about the same issue, offering both parties a clean break and peace of mind. The document must be carefully drafted in Arabic and English to comply with UAE courts' requirements and ensure enforceability.

Use a Release of Claims when settling any dispute where you need permanent closure and protection from future legal action. Common situations in UAE business include ending employment contracts, resolving construction disputes, or finalizing accident settlements. The timing matters most during major transitions like company acquisitions, project completions, or employee departures.

This document becomes essential in UAE courts when making payments to resolve conflicts, especially in commercial disputes governed by local civil codes. Having it ready before making settlement payments protects your interests and ensures the other party can't reopen the matter later. Many UAE businesses include releases as standard procedure during contract terminations and dispute resolutions.

• Release Of Claims Agreement: Basic version covering specific incidents or disputes, commonly used in UAE business settlements
• Mutual Release Of Claims: Both parties release claims against each other, ideal for complex commercial disputes
• General Release Of Claims: Broad coverage releasing all possible claims, past and present
• Separation Agreement And Release: Specifically for employment terminations, including additional terms beyond release
• Mutual Release And Non Disparagement Agreement: Combines release with confidentiality and reputation protection clauses

• Business Owners: Use releases to protect their companies when settling disputes, especially in commercial disagreements or contract terminations
• Legal Counsel: Draft and review releases to ensure compliance with UAE civil law and Sharia principles
• HR Managers: Handle employment-related releases during staff departures or workplace dispute resolutions
• Construction Companies: Implement releases at project completion or when settling contractor disputes
• Insurance Companies: Require releases when settling claims to prevent future litigation
• Corporate Officers: Sign releases on behalf of their organizations during major transactions or settlements

• Identify Parties: Gather full legal names and contact details of all involved parties, including their official UAE registration numbers
• Document Claims: List all specific disputes, incidents, or matters being released, with relevant dates and details
• Consideration Details: Record the exact settlement amount or compensation being offered in exchange for the release
• Language Requirements: Prepare for bilingual drafting in Arabic and English to meet UAE court standards
• Signature Authority: Confirm who has legal power to sign on behalf of each party under UAE law
• Additional Terms: Note any confidentiality requirements or specific conditions unique to your situation

• Party Information: Complete legal names and details of all parties, with UAE entity numbers if applicable
• Release Language: Clear description of claims being released, in both Arabic and English
• Consideration Clause: Specific mention of payment or benefit exchanged for the release
• Governing Law: Express statement of UAE law application and relevant emirate jurisdiction
• Sharia Compliance: Confirmation that terms align with Islamic legal principles
• Execution Block: Proper signature spaces with witness requirements per UAE standards
• Time Limitations: Clear statement of when the release becomes effective

A Release of Claims differs significantly from a Release of Liability in several key aspects under UAE law. While both documents offer legal protection, their scope and timing vary considerably.

• Purpose and Timing: Release of Claims addresses past incidents and existing disputes, while Release of Liability focuses on potential future incidents and risks
• Consideration Required: Claims releases typically require monetary or valuable consideration under UAE law; liability releases often don't need specific compensation
• Legal Scope: Claims releases specifically target known disputes or issues; liability releases cover broader potential risks and unknown future events
• Common Usage: Claims releases resolve existing conflicts in business or employment; liability releases are preventive, used for activities or services with inherent risks
• Enforcement Structure: Claims releases need more detailed documentation of specific incidents and compensation; liability releases focus on risk descriptions and party responsibilities