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Termination Due To Non Performance for United Arab Emirates

Termination Due To Non Performance Template for United Arab Emirates

This document serves as a formal termination notice under UAE law, specifically designed to terminate a contract due to non-performance of contractual obligations. It complies with the UAE Civil Code (Federal Law No. 5 of 1985) and related commercial legislation, incorporating necessary provisions for contract termination, notice requirements, and consequences of termination. The document includes detailed sections on the specific instances of non-performance, prior notifications, termination effects, and post-termination obligations, ensuring compliance with UAE legal requirements while protecting the terminating party's interests.

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Termination Due To Non Performance

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What is a Termination Due To Non Performance?

This Termination Due to Non-Performance document is essential when one party needs to formally terminate a contract due to the other party's failure to meet their contractual obligations under UAE law. It should be used when there have been significant breaches of contract and previous attempts to remedy the situation have been unsuccessful. The document must comply with the UAE Civil Code (Federal Law No. 5 of 1985) and related commercial legislation, requiring specific elements such as clear identification of breaches, evidence of prior notices, and detailed termination procedures. It's particularly crucial to ensure all formal requirements under UAE law are met, including proper notice periods and documentation of non-performance events, to minimize the risk of the termination being challenged in UAE courts.

What sections should be included in a Termination Due To Non Performance?

1. Parties: Identification of the terminating party and the defaulting party, including full legal names and addresses

2. Background: Details of the original contract, its date, purpose, and key obligations of both parties

3. Definitions: Key terms used in the termination document, including relevant terms from the original contract

4. Non-Performance Events: Detailed description of the specific instances of non-performance, including dates and impact

5. Prior Notices: Summary of previous notifications of breach and opportunities given to remedy

6. Termination Declaration: Formal declaration of contract termination, citing relevant contractual and legal grounds

7. Effective Date: Specification of when the termination takes effect

8. Outstanding Obligations: List of any remaining obligations to be fulfilled by either party

9. Return of Property: Requirements for returning any property, documents, or materials

10. Confidentiality: Ongoing confidentiality obligations post-termination

11. Governing Law and Jurisdiction: Confirmation of UAE law application and jurisdiction for disputes

What sections are optional to include in a Termination Due To Non Performance?

1. Compensation Claims: Details of any compensation or damages being claimed, used when specific losses can be quantified

2. Transition Arrangements: Procedures for transitioning services/products to new providers, needed for complex operational contracts

3. Intellectual Property Rights: Post-termination IP arrangements, required when IP was involved in the original contract

4. Employee Matters: Handling of employee-related issues, necessary when staff transfers or employment matters are involved

5. Insurance and Indemnities: Specific provisions about ongoing insurance obligations and indemnities, used in high-risk contracts

6. Dispute Resolution Process: Detailed dispute resolution procedures, recommended for high-value contracts

7. Survival Clauses: Specific clauses that survive termination, needed for complex commercial arrangements

What schedules should be included in a Termination Due To Non Performance?

1. Schedule 1 - Original Contract: Copy of the original contract being terminated

2. Schedule 2 - Breach Notices: Copies of all formal notices of breach issued prior to termination

3. Schedule 3 - Performance Failure Evidence: Documentation evidencing the non-performance events

4. Schedule 4 - Outstanding Payments: Detailed list of any outstanding payments or financial matters

5. Schedule 5 - Return of Property Checklist: Itemized list of property, documents, and materials to be returned

6. Appendix A - Transition Plan: Detailed plan for transitioning services/products if applicable

7. Appendix B - Communication Protocol: Protocol for handling communications during the termination process

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

Termination Letter

Cost

Free to use
Relevant legal definitions





























Clauses






























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Construction

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Legal Counsel

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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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