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Termination Of Contract By Mutual Consent Letter for United Arab Emirates

Termination Of Contract By Mutual Consent Letter Template for United Arab Emirates

This document serves as a formal letter establishing the mutual agreement between parties to terminate an existing contract under United Arab Emirates law. It provides a clear framework for ending contractual relationships amicably, ensuring compliance with UAE Federal Laws, particularly UAE Federal Law No. 8 of 1980 (Labor Law) and UAE Federal Law No. 5 of 1985 (Civil Code). The letter documents the parties' agreement to terminate, specifies the effective date, addresses outstanding obligations, and includes provisions for mutual release from future commitments while maintaining any necessary ongoing obligations.

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What is a Termination Of Contract By Mutual Consent Letter?

The Termination of Contract by Mutual Consent Letter is a crucial document used in the United Arab Emirates when parties mutually agree to end their contractual relationship before its natural conclusion. This document is particularly relevant in various business contexts, from employment relationships to commercial partnerships, and must comply with UAE Federal Laws, including the UAE Labor Law and Civil Code. It becomes necessary when both parties have reached an amicable decision to terminate their agreement and need to document this decision formally. The letter typically includes key elements such as the termination date, settlement terms, and handling of outstanding obligations. This format is preferred when parties want to maintain positive relationships while ensuring legal compliance and clear documentation of the termination terms.

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

1. Letter Header and Date: Complete address details of both parties and date of the letter

2. Reference Line: Reference to the original contract including its date and any reference numbers

3. Subject Line: Clear indication that this is a mutual termination letter

4. Opening Statement: Formal greeting and reference to prior discussions regarding termination

5. Contract Identification: Clear identification of the contract being terminated including date and parties

6. Mutual Agreement Statement: Express statement of mutual agreement to terminate the contract

7. Effective Date: Clear specification of when the termination takes effect

8. Settlement of Dues: Statement regarding settlement of any outstanding payments or obligations

9. Release of Obligations: Mutual release from future obligations under the contract

10. Signature Block: Space for signatures of both parties with dates

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

1. Confidentiality Continuation: Statement regarding the continuation of any confidentiality obligations post-termination

2. Surviving Obligations: List of any specific obligations that will survive the termination

3. Return of Property: Details regarding the return of any company property or documents

4. Non-Disparagement: Mutual agreement not to make negative statements about each other

5. Future Cooperation: Agreement to cooperate on any pending matters or transitions

6. Governing Law Reference: Specific reference to UAE law governance, if not covered in original agreement

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

1. Schedule of Outstanding Payments: Detailed list of any pending payments or financial settlements

2. Property Return Checklist: List of items to be returned by either party

3. Ongoing Obligations List: Detailed list of any obligations that continue past termination

4. Settlement Calculation: Breakdown of any final settlement amounts including end of service benefits if applicable

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
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Professional Services

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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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