Termination Of Supplier Contract Template for United Arab Emirates

The Termination of Supplier Contract is essential when a company needs to formally end a supplier relationship in the UAE. This document is typically used when either party wishes to terminate the relationship due to various reasons such as contract completion, breach of terms, change in business requirements, or mutual agreement to end the relationship. It must comply with UAE Federal Law No. 5 of 1985 (Civil Code) and UAE Federal Law No. 18 of 1993 (Commercial Transactions Law). The document includes critical elements such as termination date, final settlement terms, confidentiality provisions, and post-termination obligations. It serves as a legal record of the termination and helps prevent future disputes by clearly documenting the agreed terms of separation.

1. Parties: Identification of the supplier and the company, including their full legal names, registration numbers, and registered addresses

2. Background: Reference to the original supplier agreement, its date, and a brief summary of the reason for termination

3. Definitions: Key terms used in the termination agreement, including reference to defined terms from the original agreement that remain relevant

4. Termination Date: Clear specification of when the termination takes effect, including any notice periods required under UAE law

5. Outstanding Payments: Details of any final payments due to the supplier and payment terms

6. Return of Property: Requirements for the return of any company property, documents, or materials in the supplier's possession

7. Confidentiality Obligations: Confirmation that confidentiality obligations survive termination and remain binding

8. Intellectual Property Rights: Clarification of IP ownership and any licenses that will be terminated or survive

9. Mutual Release: Release of claims between parties, subject to the terms of the termination agreement

10. Governing Law and Jurisdiction: Confirmation of UAE law as governing law and jurisdiction for any disputes