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Sole Trader Contract for United Arab Emirates

Sole Trader Contract Template for United Arab Emirates

A comprehensive legal agreement governed by UAE law that establishes the commercial relationship between a sole trader and a client company. The contract defines the scope of services, payment terms, obligations, and legal responsibilities while ensuring compliance with UAE commercial regulations and business practices. It incorporates specific provisions required under UAE Federal Laws, including commercial transaction requirements, business licensing obligations, and relevant emirate-level regulations, making it suitable for use across all emirates while maintaining alignment with local business practices.

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What is a Sole Trader Contract?

The Sole Trader Contract is essential for businesses operating in the UAE that engage independent professionals or sole traders for specific services. This document is designed to comply with UAE Federal Law No. 18 of 1993 (Commercial Transactions Law) and other relevant UAE commercial regulations. It provides a comprehensive framework for engaging sole traders while protecting both parties' interests through clear definition of services, payment terms, and obligations. The contract is particularly relevant in the context of the UAE's growing gig economy and increasing preference for flexible business arrangements, while ensuring compliance with local licensing requirements and commercial regulations. It includes necessary provisions for trade license verification, scope of work, payment terms, and dispute resolution mechanisms specific to the UAE legal system.

What sections should be included in a Sole Trader Contract?

1. Parties: Identification of the contracting parties - the sole trader and the client, including full legal names, trade license details, and addresses

2. Background: Context of the agreement, brief description of the sole trader's business and the client's requirements

3. Definitions: Key terms used throughout the agreement defined for clarity and legal certainty

4. Scope of Services: Detailed description of services to be provided by the sole trader

5. Term and Commencement: Duration of the agreement and start date

6. Payment Terms: Fees, payment schedule, invoicing requirements, and payment methods

7. Obligations of the Sole Trader: Key responsibilities, service standards, and performance requirements

8. Client Obligations: Client's responsibilities including provision of information and access

9. Intellectual Property Rights: Ownership and usage rights of any IP created during service provision

10. Confidentiality: Protection of confidential information and trade secrets

11. Liability and Indemnity: Limitation of liability and indemnification provisions

12. Termination: Circumstances and process for ending the agreement

13. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction for disputes

14. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

What sections are optional to include in a Sole Trader Contract?

1. Non-Compete: Restrictions on competing activities, used when sole trader will have access to sensitive business information

2. Insurance: Insurance requirements, included when specific coverage is needed for high-risk services

3. Force Majeure: Provisions for unforeseeable circumstances, particularly relevant in long-term contracts

4. Data Protection: Compliance with data protection laws, included when personal data processing is involved

5. Assignment: Rights to transfer the agreement, included when potential business sale or restructuring is anticipated

6. Key Performance Indicators: Specific performance metrics, included for service-based contracts with measurable deliverables

7. Warranties: Specific guarantees about service quality or outcomes, used for specialized professional services

8. Dispute Resolution: Alternative dispute resolution procedures, included for high-value or complex service arrangements

What schedules should be included in a Sole Trader Contract?

1. Schedule 1 - Service Specification: Detailed breakdown of services, deliverables, and performance standards

2. Schedule 2 - Fee Schedule: Detailed pricing structure, payment terms, and any variable fee arrangements

3. Schedule 3 - Service Levels: Specific performance metrics, response times, and quality standards

4. Schedule 4 - Required Insurance: Details of required insurance coverage and minimum limits

5. Appendix A - Trade License: Copy of sole trader's trade license and relevant business permits

6. Appendix B - Key Personnel: Details of key individuals involved in service delivery, if applicable

7. Appendix C - Project Timeline: Detailed project milestones and delivery dates, if applicable

8. Appendix D - Compliance Requirements: Specific regulatory or industry compliance requirements

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

Professional Services

Consulting

Information Technology

Creative Industries

Financial Services

Real Estate

Construction

Education

Healthcare

Retail

Marketing and Advertising

Engineering

Business Advisory

Hospitality

Relevant Teams

Legal

Procurement

Operations

Finance

Human Resources

Compliance

Risk Management

Commercial

Administration

Project Management

Business Development

Relevant Roles

Procurement Manager

Legal Counsel

Contract Manager

Business Development Manager

Operations Director

Project Manager

Finance Manager

Commercial Manager

HR Manager

Compliance Officer

Risk Manager

Department Head

Managing Director

CEO

CFO

General Manager

Administrative 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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