Disclosure Letter Generator for United Arab Emirates

A Disclosure Letter lets sellers tell buyers about important exceptions or issues related to their warranties and representations during UAE business deals. It's a key document that protects sellers by openly declaring any potential problems, limitations, or special circumstances that might affect the transaction's value or terms.

Under UAE commercial law, this letter acts as a safeguard for both parties - sellers avoid future claims by being upfront about known issues, while buyers gain detailed insights about what they're purchasing. Most UAE merger and acquisition deals require a Disclosure Letter as part of the standard documentation, especially for transactions involving regulated sectors or public companies.

Use a Disclosure Letter when selling a business or assets in the UAE, particularly during due diligence phases of mergers and acquisitions. This document becomes essential once you've drafted the main sale agreement and need to protect yourself from future claims about undisclosed issues.

The timing matters - prepare your Disclosure Letter before finalizing purchase agreements, but after you've gathered detailed information about potential risks or exceptions to your warranties. For UAE regulated industries like banking or insurance, start this process early as regulatory compliance disclosures often require extra time and documentation to complete properly.

• Non Disclosure Letter: Standard format for protecting sensitive business information during negotiations or partnerships in UAE markets
• Confidentiality Agreement Form: Comprehensive version used for complex transactions, often including detailed schedules and specific confidentiality obligations
• Conflict Of Interest Disclosure Letter: Specialized format for declaring potential conflicts in business dealings or board positions
• Employee Confidentiality Agreement Form: Tailored version for workforce relationships, protecting company secrets and intellectual property

• Company Sellers: Draft and issue Disclosure Letters to protect themselves when selling businesses or assets in the UAE market
• Corporate Buyers: Review and verify disclosures during due diligence, often through their legal and financial teams
• Legal Counsel: Draft, review, and negotiate the content of Disclosure Letters to ensure compliance with UAE laws
• Company Directors: Sign off on disclosures and take responsibility for their accuracy under UAE corporate governance rules
• Investment Bankers: Advise on disclosure requirements during M&A transactions and help identify material issues
• Regulatory Bodies: Monitor compliance with disclosure requirements, especially in regulated sectors like banking

• Review Sale Agreement: Examine warranties and representations to identify areas requiring disclosure
• Gather Documents: Collect all relevant contracts, licenses, permits, and corporate records mentioned in warranties
• List Exceptions: Document any deviations from warranty statements or potential issues requiring disclosure
• Check Compliance: Verify all disclosures meet UAE regulatory requirements, especially for regulated industries
• Organize Supporting Evidence: Arrange proof and documentation for each disclosure in a clear filing system
• Draft Clear Statements: Write specific, unambiguous disclosures using our platform's UAE-compliant templates
• Internal Review: Have key stakeholders verify accuracy and completeness before finalizing

• Opening Statement: Clear identification of the transaction and parties involved, with reference to the main agreement
• General Qualifications: Standard limitations applying to all disclosures under UAE law
• Warranty References: Specific links between disclosures and related warranties in the main agreement
• Disclosure Bundles: Organized sections detailing exceptions to each warranty, with supporting evidence
• Data Room References: Clear indexing of supporting documents and their locations
• Governing Law Clause: Explicit statement choosing UAE law as the governing jurisdiction
• Authentication: Proper signing blocks for authorized representatives, with company stamps if required
• Appendices: Organized supporting documents and evidence referenced in the disclosures

A Disclosure Letter differs significantly from a Disclosure Agreement in both purpose and application under UAE law. While both documents deal with information sharing, they serve distinct functions in business transactions.

• Timing and Purpose: Disclosure Letters are one-time documents used during specific transactions like business sales, while Disclosure Agreements establish ongoing obligations for information handling
• Legal Effect: Disclosure Letters protect sellers from future warranty claims by documenting exceptions, whereas Disclosure Agreements create mutual obligations for confidentiality
• Content Structure: Disclosure Letters contain specific facts and exceptions to warranties, while Disclosure Agreements outline rules and procedures for handling sensitive information
• Duration: Disclosure Letters remain relevant to a specific transaction point in time, but Disclosure Agreements typically continue for a defined period after signing