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.
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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
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
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
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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
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