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The Order Cancellation Letter is a crucial business document used in the United Arab Emirates when a party needs to formally terminate a commercial order or purchase agreement. It serves as official documentation of the cancellation decision and helps protect both parties' legal interests under UAE law. This document should be used when there is a need to cancel an order before completion, whether due to breach of terms, force majeure, mutual agreement, or other valid reasons. The letter must comply with UAE Federal Law No. 5 of 1985 (Civil Code) and Federal Law No. 18 of 1993 (Commercial Transactions Law), incorporating specific details about the order, reasons for cancellation, and any applicable financial settlements. It's particularly important in the UAE business environment where formal written communications carry significant legal weight and are often required for dispute resolution or regulatory compliance.

1. Sender Details: Full legal name, address, and contact information of the party canceling the order

2. Recipient Details: Full legal name, address, and contact information of the party receiving the cancellation notice

3. Date: Date of the cancellation letter

4. Order Reference: Clear identification of the order being cancelled, including order number, date, and brief description

5. Cancellation Statement: Clear and unambiguous statement of cancellation

6. Reason for Cancellation: Brief explanation of the grounds for cancellation

7. Legal Basis: Reference to relevant contract terms or legal provisions supporting the cancellation

8. Financial Settlement: Details of any payments made, refunds expected, or financial implications

9. Closing and Signature: Formal closing, signature block, and contact information for follow-up