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Agreement Of Money Between Two Parties for United Arab Emirates

Agreement Of Money Between Two Parties Template for United Arab Emirates

A comprehensive legal document governed by UAE law that formalizes a financial arrangement between two parties, whether individuals or entities. The agreement complies with UAE Federal Laws and considers Islamic finance principles where applicable. It details the monetary amount, payment terms, profit/interest arrangements, and includes necessary provisions for security, default, and dispute resolution under UAE jurisdiction. The document ensures enforceability in UAE courts and provides clear rights and obligations for both the providing and receiving parties.

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What is a Agreement Of Money Between Two Parties?

The Agreement Of Money Between Two Parties serves as a crucial legal instrument in the United Arab Emirates for documenting financial arrangements between parties. It is commonly used when one party provides funds to another, whether as a loan, investment, or other financial arrangement. The document must comply with UAE Federal Law No. 5 of 1985 (Civil Code) and consider Islamic finance principles where applicable. It's particularly important in the UAE market where both conventional and Islamic finance operate simultaneously. The agreement includes essential elements such as the principal amount, payment terms, profit arrangements, and any security provisions. It's designed to protect both parties' interests while ensuring enforceability in UAE courts. This document type is frequently used in business transactions, personal arrangements, and corporate financing, providing a clear framework for financial obligations and their fulfillment.

What sections should be included in a Agreement Of Money Between Two Parties?

1. Parties: Identification and details of the lender and borrower, including full legal names, addresses, and any registration numbers for corporate entities

2. Background: Context of the agreement, relationship between parties, and purpose of the monetary arrangement

3. Definitions: Definitions of key terms used throughout the agreement

4. Principal Amount: Clear statement of the amount of money being transferred/lent

5. Payment Terms: Details of how and when the money will be repaid, including payment schedule and method

6. Profit Rate/Interest: Specification of any profit rate or interest (ensuring Sharia compliance if required), calculation method, and payment schedule

7. Representations and Warranties: Statements of fact and assurances from both parties regarding their capacity and authority to enter into the agreement

8. Events of Default: Circumstances that constitute default and consequences thereof

9. Termination: Conditions and process for early termination of the agreement

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

What sections are optional to include in a Agreement Of Money Between Two Parties?

1. Security: Details of any collateral or security provided for the money - include when there is a security arrangement

2. Guarantees: Terms of any third-party guarantees - include when there is a guarantor

3. Islamic Finance Provisions: Specific provisions ensuring Sharia compliance - include when the agreement needs to be Sharia-compliant

4. Insurance: Requirements for insurance of any security or collateral - include when there is valuable security

5. Assignment: Rights and restrictions regarding transfer of rights under the agreement - include for larger amounts or complex arrangements

6. Force Majeure: Provisions for unforeseen circumstances affecting performance - include for longer-term arrangements

What schedules should be included in a Agreement Of Money Between Two Parties?

1. Payment Schedule: Detailed breakdown of payment dates, amounts, and calculation methodology

2. Security Details: Detailed description of any security or collateral provided

3. Form of Notice: Template for formal notices under the agreement

4. Bank Account Details: Specified bank accounts for making and receiving payments

5. Conditions Precedent: List of documents and conditions required before the agreement becomes effective

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

Loan Agreement

Sector

Banking

Cost

Free to use
Relevant legal definitions

























Clauses

























Relevant Industries

Financial Services

Banking

Real Estate

Construction

Trading

Manufacturing

Retail

Professional Services

Technology

Healthcare

Education

Hospitality

Small and Medium Enterprises

Family Businesses

Relevant Teams

Legal

Finance

Treasury

Compliance

Risk Management

Corporate Affairs

Credit Control

Business Development

Investment

Operations

Relevant Roles

Chief Financial Officer

Finance Manager

Legal Counsel

Corporate Lawyer

Investment Manager

Business Owner

Financial Controller

Treasury Manager

Compliance Officer

Risk Manager

Account Manager

Business Development Manager

Company Director

Managing Partner

Credit 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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