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Final Agreement Letter Template for United Arab Emirates

A Final Agreement Letter under UAE law is a formal document that serves as a definitive record of agreed terms between parties, combining the formality of UAE business correspondence with legally binding elements. The document must comply with UAE Civil Code requirements and, where applicable, UAE Commercial Transactions Law. It typically includes detailed terms, conditions, and obligations while maintaining the structural elements of formal UAE business correspondence. The document can be used in both Arabic and English, though Arabic is the official language for legal proceedings in the UAE.

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What is a Final Agreement Letter?

The Final Agreement Letter is a crucial document in UAE business practice, used to formalize and conclude negotiations or arrangements between parties. It serves as a bridge between informal discussions and formal contracts, providing a clear record of agreed terms while maintaining the cultural and legal requirements of UAE business correspondence. This document type is particularly relevant in the UAE's dynamic business environment, where international and local parties frequently engage in commercial relationships. The Final Agreement Letter must comply with UAE Civil Code requirements and often includes provisions for both Arabic and English versions. It's commonly used in situations where parties need to formalize their agreement quickly while maintaining legal enforceability, such as business partnerships, service arrangements, or commercial transactions.

What sections should be included in a Final Agreement Letter?

1. Letter Header: Formal letterhead including date, reference number, and proper addressing of the recipient according to UAE business protocols

2. Parties: Full legal names and addresses of all parties involved, including their registration details if companies

3. Background: Brief context of previous discussions, negotiations, or arrangements leading to this final agreement

4. Definitions: Clear definitions of key terms used in the agreement letter

5. Subject Line: Clear statement indicating this is a Final Agreement Letter regarding the specific subject matter

6. Agreement Terms: Concise but comprehensive outline of the final agreed terms and conditions

7. Financial Terms: Clear statement of all financial obligations and payment terms

8. Timeline: Key dates, deadlines, and duration of the agreement

9. Confirmation of Understanding: Statement confirming that all parties understand and agree to the terms

10. Execution Details: Information about how and when the agreement takes effect

11. Closing: Formal closing statement with appropriate signatory blocks for all parties

What sections are optional to include in a Final Agreement Letter?

1. Confidentiality Statement: Required when the agreement involves sensitive information or trade secrets

2. Governing Law and Jurisdiction: Needed when dealing with international parties or specific emirate jurisdiction matters

3. Force Majeure: Include when the agreement involves ongoing obligations that could be affected by unforeseen circumstances

4. Dispute Resolution: Required when parties want to specify particular dispute resolution mechanisms

5. Language Declaration: Necessary when the agreement is bilingual or when specifying which language version prevails

6. Electronic Execution Clause: Include when the agreement may be executed electronically

7. Sharia Compliance Statement: Required when the agreement needs explicit confirmation of compliance with Islamic law principles

What schedules should be included in a Final Agreement Letter?

1. Schedule A - Detailed Terms: Comprehensive listing of all specific terms and conditions referenced in the main letter

2. Schedule B - Payment Schedule: Detailed breakdown of payment terms, installments, and financial obligations

3. Schedule C - Timeline: Detailed project or delivery timeline with specific milestones and deadlines

4. Appendix 1 - Supporting Documents: Copies of relevant certificates, licenses, or other supporting documentation

5. Appendix 2 - Contact Details: List of key contacts and their details for all parties

6. Appendix 3 - Previous Correspondence: Reference list or copies of key previous correspondence leading to this final agreement

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Cost

Free to use

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