Money Owed Contract Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

Money Owed Contract Agreement

I need a Money Owed Contract Agreement for a business debt of AED 500,000 between two UAE companies, with post-dated cheques as security and monthly installments starting from March 2025.

Document background
The Money Owed Contract Agreement is essential for businesses and individuals operating in the UAE who need to formally document debt obligations. This agreement is particularly relevant when parties need to establish clear, enforceable terms for debt repayment, whether arising from business transactions, loans, or other financial obligations. The document must comply with UAE Civil Code (Federal Law No. 5 of 1985) and consider Sharia principles, particularly regarding interest calculations. It's commonly used in scenarios ranging from business-to-business credit arrangements to individual loan agreements, providing a structured framework for debt acknowledgment, repayment terms, and enforcement mechanisms recognized by UAE courts.
Suggested Sections

1. Parties: Identification and details of the creditor and debtor, including full legal names, addresses, and registration details if companies

2. Background: Context of the debt, including origin of the debt and any pre-existing relationships or agreements

3. Definitions: Key terms used throughout the agreement, including 'Debt Amount', 'Interest Rate' (if applicable), 'Payment Date', etc.

4. Acknowledgment of Debt: Clear statement of the debt amount and debtor's acknowledgment of the obligation

5. Payment Terms: Detailed payment schedule, including amount, frequency, and method of payments

6. Interest and Charges: Details of any applicable interest (in compliance with UAE law and Sharia principles) and administrative charges

7. Default Provisions: Consequences of missing payments and remedies available to the creditor

8. Representations and Warranties: Debtor's confirmations regarding their ability to pay and financial status

9. Governing Law and Jurisdiction: Specification of UAE law as governing law and relevant courts' jurisdiction

10. Notices: How formal communications between parties should be made and delivered

Optional Sections

1. Security Provisions: Details of any collateral or security provided for the debt, used when security is offered

2. Guarantor Provisions: Terms applying to any guarantor of the debt, included when a guarantor is involved

3. Early Repayment: Terms for early repayment of the debt, including any applicable discounts or penalties

4. Insurance Requirements: Any insurance required to be maintained by the debtor, included for larger debts or business loans

5. Assignment: Rights to assign the debt to third parties, included when debt assignment might be contemplated

6. Force Majeure: Provisions for unforeseen circumstances affecting payment ability, included in longer-term payment arrangements

7. Confidentiality: Terms regarding confidentiality of the agreement, included for business or sensitive debts

Suggested Schedules

1. Payment Schedule: Detailed breakdown of payment dates, amounts, and cumulative payments

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

3. Evidence of Debt: Copies of relevant documents proving the original debt (invoices, statements, etc.)

4. Post-dated Cheques: List and details of any post-dated cheques provided as payment security

5. Guarantor Documents: Copies of guarantor identification and relevant documentation

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant Industries

Banking & Financial Services

Real Estate

Construction

Retail

Manufacturing

Professional Services

Healthcare

Education

Hospitality

Trading & Distribution

Technology

Small Business & Entrepreneurship

Relevant Teams

Legal

Finance

Accounts Receivable

Credit Control

Treasury

Risk Management

Compliance

Corporate Affairs

Debt Recovery

Commercial Operations

Relevant Roles

Finance Manager

Credit Controller

Legal Counsel

Chief Financial Officer

Accounts Receivable Manager

Contract Administrator

Risk Manager

Treasury Manager

Collections Specialist

Business Owner

Financial Director

Compliance Officer

Corporate Lawyer

Debt Recovery Specialist

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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