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Mutual Termination Of Contract for United Arab Emirates

Mutual Termination Of Contract Template for United Arab Emirates

This document is a comprehensive template for the mutual termination of contracts under United Arab Emirates law, designed to facilitate the consensual ending of contractual relationships between parties. It incorporates key provisions required under UAE Civil Code (Federal Law No. 5 of 1985) and relevant commercial legislation, ensuring compliance with local legal requirements while providing a framework for documenting the agreed termination terms, settlement of outstanding obligations, and mutual releases. The template includes provisions for financial settlements, return of property, and survival of specific obligations, tailored to meet the requirements of UAE jurisdiction and business practices.

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What is a Mutual Termination Of Contract?

The Mutual Termination of Contract Template is designed for use in the United Arab Emirates when parties mutually agree to end their contractual relationship before its natural conclusion. This document is essential when both parties wish to formally document their agreement to terminate existing obligations while ensuring compliance with UAE Civil Code requirements. It should be used when there is an amicable agreement to end the contract, requiring clear documentation of the termination terms, settlement of outstanding matters, and mutual releases. The template is structured to accommodate various types of commercial and business relationships, incorporating necessary provisions for financial settlements, property return, and ongoing obligations. It includes specific references to UAE law and jurisdiction, making it suitable for use across different emirates while maintaining legal compliance.

What sections should be included in a Mutual Termination Of Contract?

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

2. Background: Reference to the original contract being terminated, its date, and brief context for the termination

3. Definitions: Key terms used in the termination agreement, including definition of the Original Contract and Termination Date

4. Termination: Clear statement of mutual agreement to terminate the Original Contract and the effective date of termination

5. Settlement of Outstanding Obligations: Details of any payments, services, or deliverables that must be completed before or after termination

6. Return of Property: Requirements for returning any physical or intellectual property, documents, or confidential information

7. Mutual Release: Release of claims and obligations between the parties, subject to any surviving provisions

8. Surviving Provisions: Identification of any original contract provisions that will survive the termination

9. Governing Law and Jurisdiction: Confirmation that UAE law governs the termination agreement and specification of jurisdiction for disputes

What sections are optional to include in a Mutual Termination Of Contract?

1. Non-Disparagement: Mutual agreement not to make negative statements about each other, particularly relevant for high-profile commercial relationships

2. Confidentiality: Specific confidentiality obligations regarding the termination and its terms, if not covered in surviving provisions

3. Tax Provisions: Allocation of tax liabilities and responsibilities, particularly relevant for international contracts

4. Further Assurance: Commitment to execute additional documents or take further actions needed to effect the termination

5. Transitional Arrangements: Temporary arrangements for smooth transition, particularly relevant for complex operational contracts

6. Third Party Rights: Addressing any third party rights affected by the termination

What schedules should be included in a Mutual Termination Of Contract?

1. Schedule 1 - Financial Settlement: Detailed breakdown of any financial settlements, including payment amounts, timelines, and methods

2. Schedule 2 - Assets Register: List of physical assets to be returned or transferred between parties

3. Schedule 3 - Outstanding Obligations: Comprehensive list of any remaining obligations and their agreed resolution

4. Appendix A - Original Contract: Copy of the original contract being terminated

5. Appendix B - Settlement Calculations: Supporting calculations for any financial settlements or adjustments

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

Document Type

Cancellation Letter

Sector

Sales

Cost

Free to use
Relevant legal definitions






























Clauses






























Relevant Industries

Real Estate

Construction

Financial Services

Technology

Manufacturing

Retail

Healthcare

Education

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Hospitality

Energy

Telecommunications

Transportation

Media and Entertainment

Relevant Teams

Legal

Procurement

Commercial

Human Resources

Finance

Operations

Compliance

Risk Management

Business Development

Contract Administration

Relevant Roles

Legal Counsel

Contract Manager

Business Development Manager

Chief Executive Officer

Chief Operating Officer

Commercial Director

Procurement Manager

Project Manager

Human Resources Director

Finance Director

Compliance Officer

General Manager

Operations Manager

Legal Director

Risk 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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