The Business Relationship Termination Letter is a crucial document used in the United Arab Emirates when formally ending a business relationship or commercial agreement. It must comply with UAE Federal Law No. 18 of 1993 (Commercial Code) and other relevant regulations, including specific free zone requirements where applicable. This document is typically used when ending distributor agreements, supplier contracts, agency relationships, or other business partnerships. The letter should be drafted carefully to include all required elements under UAE law, such as proper notice periods, clear termination statements, and any post-termination obligations. It serves as both a legal record and a practical guide for managing the termination process, helping prevent potential disputes and ensuring a smooth transition.
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1. Letter Header and Date: Formal business letter header including sender's details, recipient's details, and date
2. Reference Line: Reference to the original agreement/contract being terminated, including its date and any reference numbers
3. Subject Line: Clear statement that this is a termination notice
4. Opening Paragraph: Formal greeting and reference to the business relationship
5. Termination Statement: Clear and unambiguous statement of termination, citing relevant contract clauses
6. Effective Date: Specific date when the termination becomes effective, considering any notice periods required by the original agreement
7. Reason for Termination: Brief, professional explanation of the termination reason if appropriate
8. Outstanding Obligations: Summary of any remaining obligations, payments, or deliverables
9. Next Steps: Clear outline of required actions from both parties
10. Closing Statement: Professional closing with contact information for future correspondence
1. Confidentiality Reminder: Include when there are specific confidentiality obligations that survive termination
2. Non-Compete/Non-Solicitation: Include when these restrictions exist and survive termination
3. Intellectual Property Rights: Include when there are IP matters to be addressed post-termination
4. Dispute Resolution Process: Include when there are ongoing disputes or high risk of disputes
5. Return of Property: Include when physical or digital assets need to be returned
6. Transition Plan: Include when the termination requires a structured handover process
1. Financial Settlement Schedule: Detailed breakdown of final payments, refunds, or financial settlements
2. Asset Transfer List: Inventory of physical or digital assets to be returned or transferred
3. Outstanding Obligations Checklist: Detailed list of remaining deliverables or obligations from both parties
4. Contact Details for Transition: List of key contacts for handling the termination process
5. Timeline for Handover: Detailed schedule of transition activities and deadlines
Relevant legal definitions
Clauses
Relevant Industries
Retail
Manufacturing
Professional Services
Technology
Construction
Real Estate
Healthcare
Financial Services
Logistics
Hospitality
Education
Consulting
Import/Export
Media and Entertainment
Telecommunications
Relevant Teams
Legal
Operations
Procurement
Business Development
Compliance
Risk Management
Commercial
Contract Management
Corporate Secretariat
Executive Leadership
Account Management
Project Management
Relevant Roles
Chief Executive Officer
Managing Director
Legal Counsel
Contract Manager
Business Development Manager
Operations Director
Procurement Manager
Commercial Manager
Relationship Manager
Compliance Officer
Risk Manager
General Counsel
Company Secretary
Project Manager
Account Manager
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