Debt Recovery Letter Of Demand Template for United Arab Emirates

A formal written demand for payment issued under the United Arab Emirates legal framework, specifically compliant with UAE Federal Law No. 5 of 1985 (Civil Code) and Federal Law No. 18 of 1993 (Commercial Transactions Law). This document serves as a final notice before initiating legal proceedings, clearly stating the outstanding debt amount, payment terms, and deadline for settlement. It includes essential details about the debt's origin, calculation of any applicable interest, and consequences of non-payment under UAE law, while ensuring compliance with local debt collection practices and Sharia principles where applicable.

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What is a Debt Recovery Letter Of Demand?

The Debt Recovery Letter of Demand is a crucial document in the United Arab Emirates' debt recovery process, serving as a formal prerequisite before initiating legal proceedings. It is typically used when informal attempts to collect payment have been unsuccessful and the creditor needs to escalate the matter. The document must comply with UAE Federal Laws, including the Civil Code and Commercial Transactions Law, and should be drafted in a manner that respects local business customs and Sharia principles. This letter formally documents the demand for payment, including specific details about the debt, payment history, and a clear deadline for settlement. It is essential in establishing a paper trail for potential court proceedings and demonstrates the creditor's attempt to resolve the matter amicably before seeking legal remedies.

What sections should be included in a Debt Recovery Letter Of Demand?

1. Sender Details: Full legal name, address, and contact information of the creditor or their authorized representative

2. Recipient Details: Full legal name, address, and contact information of the debtor

3. Date: Date of the letter issuance

4. Subject Line: Clear indication that this is a formal demand for payment

5. Debt Details: Precise amount owed, origin of the debt, and date when it was incurred

6. Payment History: Summary of any partial payments made and current outstanding balance

7. Legal Basis: Reference to relevant contract or basis for the debt under UAE law

8. Demand Statement: Clear statement of demand for payment, including the full amount and deadline

9. Payment Instructions: Specific details of how and where to make the payment

10. Legal Consequences: Statement of potential legal action if payment is not received by the deadline

What sections are optional to include in a Debt Recovery Letter Of Demand?

1. Previous Communications: Reference to prior attempts to collect the debt - include when there has been previous correspondence

2. Interest Calculation: Breakdown of any applicable interest charges - include when claiming interest under UAE law

3. Without Prejudice: Legal reservation of rights - include when offering any form of settlement or compromise

4. Sharia Compliance Statement: Statement confirming the debt's compliance with Sharia principles - include when dealing with Islamic financial institutions

5. Settlement Offer: Proposed payment plan or settlement terms - include when willing to negotiate payment terms

6. Power of Attorney Reference: Details of legal representation authority - include when letter is sent by a legal representative

What schedules should be included in a Debt Recovery Letter Of Demand?

1. Original Contract: Copy of the original agreement or contract that established the debt

2. Statement of Account: Detailed statement showing all transactions, payments, and current balance

3. Payment Evidence: Copies of bounced checks, failed transfer notices, or other payment-related documents

4. Communication Records: Copies of relevant previous correspondence regarding the debt

5. Interest Calculation Sheet: Detailed breakdown of interest calculations if applicable

6. Authorization Documents: Power of attorney or authorization documents if sent by a representative

Authors

Alex Denne

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

Publisher

Genie AI

Document Type

Demand Letter

Cost

Free to use

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