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.
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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
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
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
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