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A Letter of Intent to Become a Distributor is commonly used in the UAE market as a preliminary step before entering into a formal distribution agreement. This document is particularly important in the UAE context due to the strict regulations governing commercial agency and distribution relationships under UAE Federal Law No. 18 of 1981 (Commercial Agency Law). It serves to document the parties' initial understanding and commitment to negotiate while protecting confidential information exchanged during discussions. The letter typically includes proposed territory definitions, product ranges, and basic commercial terms, while maintaining a non-binding nature except for specific provisions. It's particularly useful when parties need to conduct due diligence or require time to negotiate detailed terms before committing to a full distribution agreement.

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

2. Introduction: Brief introduction of the sender company and its business

3. Expression of Intent: Clear statement of intention to enter into a distribution arrangement

4. Basic Terms: Overview of key proposed terms including territory, products, and general responsibilities

5. Due Diligence: Statement regarding the evaluation process and information exchange

6. Timeline: Proposed timeline for negotiation and execution of final agreement

7. Non-Binding Nature: Clear statement that the letter is non-binding except for specified provisions

8. Confidentiality: Binding confidentiality provisions for shared information

9. Exclusivity Period: Period during which parties agree not to negotiate with others

10. Contact Details: Key contact persons for further discussions

11. Closing: Signature blocks and formal letter closing