The Commission Confirmation Letter is a crucial business document used in the United Arab Emirates to formalize commission-based business relationships. This document is typically employed when establishing new sales relationships, modifying existing commission arrangements, or confirming special commission terms for specific transactions or periods. The letter needs to comply with UAE Federal Law No. 18 of 1993 (Commercial Code) and related regulations governing commercial agency and commission arrangements. It includes essential details such as commission rates, calculation methods, payment terms, duration, and any specific conditions or requirements. The Commission Confirmation Letter serves as a clear record of the agreed terms while providing a more flexible and less formal alternative to a full commission agreement, making it particularly useful for shorter-term or straightforward commission arrangements.

1. Letter Header: Company letterhead, date, reference number, and recipient's address

2. Salutation: Formal greeting to the recipient

3. Subject Line: Clear indication that this is a Commission Confirmation Letter

4. Introduction: Brief introduction identifying the parties and reference to any prior discussions or agreements

5. Commission Structure: Clear statement of commission rates, calculation basis, and qualifying transactions

6. Payment Terms: Details of payment frequency, method, and any conditions precedent

7. Duration: Period of validity for the commission arrangement

8. Governing Law: Confirmation of UAE law application

9. Signature Block: Space for authorized signatory details and signature