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The Intention Letter Model is a crucial preliminary document used in the United Arab Emirates business environment to initiate formal negotiations and outline the basic terms of a proposed transaction. This document type is particularly relevant in the UAE context where business relationships often require formal documentation of intentions before proceeding to detailed negotiations. The Letter of Intent serves as a roadmap for future discussions while typically maintaining a non-binding nature for most provisions, except for specific elements like confidentiality and exclusivity. It must align with UAE federal laws, including the Civil Code and Commercial Transactions Law, and often needs to consider Sharia law principles. The document is commonly used in mergers and acquisitions, joint ventures, real estate developments, and significant commercial transactions, providing a structured approach to preliminary agreements while respecting local legal requirements and business customs.

1. Letter Header: Date, recipient details, and formal letter reference

2. Opening Statement: Clear statement that this is a Letter of Intent and the general purpose of the proposed transaction

3. Parties Introduction: Full legal names and addresses of all parties involved

4. Transaction Overview: Brief description of the proposed transaction or relationship

5. Key Terms: Outline of the principal terms and conditions being considered

6. Timeline: Proposed schedule for negotiations and completion of the final agreement

7. Confidentiality: Statement regarding the confidential nature of discussions and any information exchanged

8. Non-Binding Nature: Clear statement about which provisions are non-binding vs. binding

9. Governing Law: Specification of UAE law as the governing law

10. Signature Block: Space for authorized signatures and company stamps as per UAE custom