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The Delayed Payment Agreement is a crucial document used in UAE business operations when a debtor requires additional time to fulfill their payment obligations. This agreement is particularly relevant in the current business climate where cash flow management is critical. It transforms an immediate payment obligation into a structured payment plan, providing legal certainty while maintaining commercial relationships. The document must comply with UAE Federal Laws, including the Civil Code (Federal Law No. 5 of 1985) and Commercial Code (Federal Law No. 18 of 1993), and can be structured to accommodate both conventional and Islamic finance principles. It typically includes detailed payment schedules, security arrangements, guarantees, and enforcement mechanisms, making it essential for businesses managing credit relationships in the UAE market.

1. Parties: Identification of the creditor and debtor, including full legal names, addresses, and registration details

2. Background: Recitals explaining the original debt, circumstances leading to the delayed payment arrangement, and parties' intention to enter into this agreement

3. Definitions: Definitions of key terms used throughout the agreement, including 'Original Debt', 'New Payment Date(s)', 'Default Interest', etc.

4. Acknowledgment of Debt: Clear statement of the original debt amount, its origin, and debtor's acknowledgment of the obligation

5. Payment Terms: Detailed payment schedule, including amounts, dates, and method of payment

6. Interest/Profit Rate: Specification of any applicable interest or profit rate, ensuring compliance with UAE law and any Sharia requirements if applicable

7. Default Provisions: Consequences of missing payments, including acceleration clauses and default interest/charges

8. Representations and Warranties: Standard representations about capacity to enter agreement and validity of debt

9. Covenants: Ongoing obligations of the debtor during the payment period

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

11. Notices: Process for sending and receiving formal communications between parties

12. General Provisions: Standard boilerplate clauses including entire agreement, amendments, severability, etc.