The Demand Letter Without Prejudice is a critical business document used in the United Arab Emirates when formal payment or performance demands need to be made while keeping settlement options open. This document type serves as an important step in the debt recovery process, typically issued before initiating legal proceedings in UAE courts. It must comply with UAE Federal Laws, including the Civil Code and Commercial Transactions Law, while incorporating the 'Without Prejudice' concept that, although derived from common law, has been adapted to function within the UAE's civil law system. The letter should clearly state the outstanding obligations, provide relevant details and evidence, set reasonable deadlines for response or payment, and indicate potential legal consequences while maintaining the possibility of amicable settlement. It's particularly useful in commercial disputes where maintaining business relationships is desired while pursuing outstanding obligations.

1. Letter Header: Including 'Without Prejudice' designation, date, sender's details, recipient's details, and reference number if applicable

2. Addressing and Reference: Formal addressing of the recipient and reference to relevant contracts or transactions

3. Relationship Context: Brief description of the business relationship or context of the debt/obligation

4. Debt/Obligation Details: Clear statement of the amount owed or obligation unfulfilled, including dates and specific details

5. Payment History: Summary of any previous payments made or attempts to resolve the matter

6. Legal Basis: Reference to relevant contractual terms or legal obligations that form the basis of the demand

7. Demand Statement: Clear statement of what is being demanded, including payment amount or specific actions required

8. Timeline: Specific deadline for response or payment, typically 7-14 days in UAE practice

9. Consequences: Statement of intended legal action if demand is not met, while maintaining the without prejudice nature

10. Closing: Professional closing statement, signature block, and contact information for response