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Penalty clause in service providing contract for delaying payments

Can we add a special clause for charging some additional amount to the clients after the delivery of our product/service for delayed payment, which exceeds the time specifically mentioned in service contracts?

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Maryam Hayyaz & Wejdan Bushahab Advocates
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9 Feb 2020, 15:20

Dear questioner,

Yes, you can do that for sure. We can help you with this.

Kindly contact us by phone for a detailed discussion or write to us at our email for further assistance.

Avrio Legal Group
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9 Feb 2020, 19:43

Hi,

You are, in fact, allowed to implement a penalty for delayed payment. However, the penalty must be in accordance with the UAE Law.

In such a case, we suggest reviewing the agreement in order to determine the best method of implementing such a clause.

For further information, contact us at our email.

10 Feb 2020, 04:41

Thank you so much for your valuable advice.

Please let me know the ratio of penalty in accordance with the UAE law.

For example, if the client exceeds the time as per the agreement, is it possible to add a penalty clause for daily basis or monthly basis.

10 Feb 2020, 05:52

Hi,

In such a case, we suggest that we review the agreement prior to implementing any delayed penalty fees.

The purpose behind this will be to ensure that there are no conflicts within the provisions of the agreement and applicable laws.

Al Maidoor Advocates & Legal Consultants
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10 Feb 2020, 13:19

You can do this after the approval of the client, according to the general rule (contract governs the parties).

Regards,

Nahed Lawyer

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