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Financial Release Form for United Arab Emirates

Financial Release Form Template for United Arab Emirates

A comprehensive legal document governed by UAE law that formally releases one party from financial obligations, claims, or liabilities owed to another party. This document adheres to the requirements of UAE Federal Law No. 5 of 1985 (Civil Code) and related financial regulations, providing a legally binding mechanism for discharging financial obligations. It includes specific provisions for the release amount, payment terms, and mutual acknowledgments, while ensuring compliance with UAE Central Bank regulations and local commercial practices.

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What is a Financial Release Form?

The Financial Release Form is a critical legal instrument used in the United Arab Emirates when one party wishes to formally discharge another party from financial obligations or liabilities. This document is commonly utilized in situations involving debt settlements, contract terminations, or the conclusion of financial arrangements. The form must comply with UAE Federal Laws, particularly the Civil Code and Commercial Transactions Law, and typically includes detailed information about the parties involved, the specific obligations being released, consideration provided (if any), and relevant terms and conditions. It's particularly important in the UAE business environment where formal documentation of financial settlements is essential for legal certainty and compliance with local regulatory requirements.

What sections should be included in a Financial Release Form?

1. Parties: Full legal names and details of the Releasor (party providing the release) and Releasee (party being released)

2. Background: Context of the original financial obligation and the circumstances leading to this release

3. Definitions: Key terms used in the document including 'Released Claims', 'Effective Date', and any specific financial terms

4. Release and Discharge: Core section detailing the specific financial obligations being released and the scope of the release

5. Consideration: Details of any payment or consideration given in exchange for the release

6. Acknowledgments: Statements confirming understanding of the release's implications and voluntary nature of execution

7. Representations and Warranties: Confirmations regarding authority to execute, absence of prior assignments, and understanding of rights being waived

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

9. Execution: Signature blocks and execution requirements compliant with UAE law

What sections are optional to include in a Financial Release Form?

1. Confidentiality: Required when the parties wish to keep the release and its terms confidential

2. Non-Admission of Liability: Optional clause stating that the release does not constitute admission of liability

3. Future Claims: Additional provisions regarding potential future claims when dealing with ongoing business relationships

4. Third Party Rights: Required when the release affects rights of parties not directly signing the release

5. Partial Invalidity: Severability provisions for complex releases involving multiple obligations

6. Language: Required when the document is bilingual Arabic/English, specifying which version prevails

What schedules should be included in a Financial Release Form?

1. Schedule 1 - Details of Released Claims: Detailed list of specific financial obligations being released

2. Schedule 2 - Payment Details: If applicable, breakdown of any settlement payments or consideration

3. Schedule 3 - Related Agreements: List of any related agreements affected by the release

4. Appendix A - Required Documents: Copies of relevant financial documents, statements, or original agreements being released

5. Appendix B - Corporate Authorizations: If applicable, corporate approvals or power of attorney documents

Authors

Alex Denne

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

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions





















Clauses




















Relevant Industries

Banking & Financial Services

Insurance

Real Estate

Construction

Manufacturing

Retail

Professional Services

Healthcare

Education

Technology

Telecommunications

Energy

Trading & Distribution

Investment & Securities

Relevant Teams

Legal

Finance

Accounting

Treasury

Risk Management

Compliance

Corporate Governance

Credit Control

Collections

Business Development

Relevant Roles

Chief Financial Officer

Finance Director

Legal Counsel

Corporate Lawyer

Accounts Manager

Credit Controller

Treasury Manager

Risk Manager

Compliance Officer

Company Secretary

Financial Controller

Business Development Manager

Contract Manager

Settlement Officer

Collections 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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