Promissory Note Demand Letter for United Arab Emirates

Promissory Note Demand Letter Template for United Arab Emirates

A formal written demand for payment based on a promissory note, drafted in accordance with UAE Commercial Transactions Law (Federal Law No. 18 of 1993) and related regulations. This document serves as an official request for payment of a debt evidenced by a promissory note, incorporating specific requirements under UAE law including clear payment demands, reference to the original promissory note, and specified payment terms. The document is designed to establish a clear record of formal demand and can be used as evidence in subsequent legal proceedings in UAE courts if payment is not received.

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What is a Promissory Note Demand Letter?

The Promissory Note Demand Letter is a crucial document in UAE commercial and financial transactions, used when a creditor seeks to collect payment on a promissory note that has become due. It must comply with the UAE Commercial Transactions Law (Federal Law No. 18 of 1993) and related regulations, serving as both a formal demand for payment and a prerequisite to legal action. This document type is commonly used in situations where a debt remains unpaid despite the existence of a valid promissory note, and the creditor wishes to formally demand payment before pursuing legal remedies. The letter typically includes specific references to the original promissory note, exact amount owed, payment deadline, and potential legal consequences of non-payment, all structured to meet UAE legal requirements.

What sections should be included in a Promissory Note Demand Letter?

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

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

3. Date: Current date of the demand letter

4. Subject Line: Clear identification as a Demand Letter for Payment of Promissory Note

5. Promissory Note Details: Reference number, date, and amount of the original promissory note

6. Demand Statement: Clear and unequivocal demand for payment, including the exact amount owed

7. Payment Terms: Specified deadline for payment and acceptable payment methods

8. Legal Consequences: Statement of legal actions that will be taken if payment is not received

9. Signature Block: Signature of creditor or authorized representative, with name and title

What sections are optional to include in a Promissory Note Demand Letter?

1. Interest Calculation: Include when claiming interest on the outstanding amount, showing detailed calculation as per UAE law

2. Previous Communication Reference: Include when there have been previous demands or correspondence regarding the debt

3. Bank Account Details: Include when providing specific payment instructions for direct transfer

4. Power of Attorney Reference: Include when the letter is being sent by a legal representative rather than the original creditor

5. Without Prejudice Statement: Include when the letter is part of ongoing settlement negotiations

What schedules should be included in a Promissory Note Demand Letter?

1. Copy of Original Promissory Note: Authenticated copy of the original promissory note

2. Payment History Schedule: Detailed schedule showing any partial payments made and remaining balance

3. Interest Calculation Schedule: Detailed breakdown of interest calculations if applicable

4. Previous Correspondence Log: Chronological list of all previous demands and communications regarding the debt

5. Power of Attorney Document: If applicable, copy of power of attorney authorizing representative to act on creditor's behalf

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 | Serial Founder & Legal AI Author

Publisher

Genie AI

Document Type

Demand Letter

Cost

Free to use
Relevant Industries

Banking & Financial Services

Legal Services

Commercial Trading

Real Estate

Manufacturing

Retail

Construction

Professional Services

Import/Export

General Commerce

Relevant Teams

Legal

Finance

Credit Control

Collections

Treasury

Risk Management

Compliance

Corporate Secretariat

Accounts Receivable

Corporate Administration

Relevant Roles

Chief Financial Officer

Financial Controller

Credit Manager

Collections Manager

Legal Counsel

Corporate Lawyer

Finance Director

Accounts Receivable Manager

Treasury Manager

Risk Manager

Company Secretary

Compliance Officer

Credit Control Officer

Legal Administrator

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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