The Letter of Business Termination is a crucial document used in the United Arab Emirates when formally ending a business relationship or commercial arrangement. It must align with UAE Federal Laws, including Commercial Law No. 18 of 1993 and the Civil Code, while adhering to local business practices and customs. This document is typically employed when ending supplier contracts, distribution agreements, partnership arrangements, or other commercial relationships. The letter serves multiple purposes: it provides formal notice of termination, specifies the effective date, outlines the notice period, details any transition arrangements, and addresses outstanding obligations. In the UAE business context, such formal communication is essential for legal compliance and maintaining professional relationships, even during the termination process.
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1. Letter Header: Company letterhead, date, reference number, and formal addressing of recipient
2. Subject Line: Clear indication that this is a Business Termination Notice
3. Opening Paragraph: Formal greeting and reference to relevant business relationship or contract being terminated
4. Termination Statement: Clear and unambiguous statement of termination, including effective date and reference to termination clause in original agreement
5. Notice Period: Specification of notice period being given, in compliance with original agreement and UAE law
6. Outstanding Obligations: Statement regarding settlement of accounts, pending payments, or outstanding deliverables
7. Return of Property: Instructions regarding return of any company property, documents, or confidential information
8. Closure Process: Overview of steps to be taken during the transition period
9. Final Communication: Professional closing statement and contact information for future correspondence
10. Signature Block: Authorized signatory details and company stamp
1. Reason for Termination: Include when it's necessary or beneficial to explain the business reasons for termination
2. Transition Plan: Detailed transition arrangements when complex handover is required
3. Non-Compete Reminder: Reference to existing non-compete clauses when applicable
4. Confidentiality Obligations: Reminder of ongoing confidentiality obligations post-termination
5. Dispute Resolution: Include when there are unresolved issues or potential disputes
6. Final Settlement Terms: Detailed breakdown of final payments or settlements when complex financial matters are involved
1. Schedule A - Outstanding Payments: Detailed list of any pending financial settlements or payment schedules
2. Schedule B - Company Property Inventory: List of company assets or properties to be returned
3. Schedule C - Transition Timeline: Detailed timeline for handover of responsibilities and closure of business relationship
4. Appendix 1 - Original Contract Reference: Copy or reference to relevant sections of the original business agreement regarding termination
Relevant legal definitions
Clauses
Relevant Industries
Retail
Manufacturing
Professional Services
Technology
Construction
Trading
Healthcare
Hospitality
Real Estate
Financial Services
Logistics
Energy
Telecommunications
Consumer Goods
Media and Entertainment
Relevant Teams
Legal
Operations
Procurement
Commercial
Business Development
Compliance
Contract Management
Supply Chain
Account Management
Executive Leadership
Risk Management
Finance
Administration
Relevant Roles
Chief Executive Officer
Managing Director
Legal Counsel
Business Development Manager
Operations Director
Procurement Manager
Contract Manager
Commercial Director
Compliance Officer
General Manager
Partner Relations Manager
Supply Chain Manager
Account Manager
Business Unit Head
Regional Director
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