Document background
The Termination of Contract by Mutual Consent is a critical document used when parties mutually agree to end their contractual relationship under UAE law. This document is particularly relevant when both parties wish to formally conclude their obligations while ensuring legal compliance with UAE Civil Code requirements. It should be used when there is clear agreement between parties to terminate their existing contract and need to document the terms of separation, including settlement of accounts, return of properties, and mutual releases. The document provides protection for all parties by clearly stating the termination terms, surviving obligations, and effective date of termination. It's especially important in the UAE context where formal documentation of agreement termination helps prevent future disputes and ensures compliance with local commercial practices and legal requirements.
