Demand Letter For Settlement Purposes Only Template for Saudi Arabia

The Demand Letter For Settlement Purposes Only is a crucial document in Saudi Arabian business practice, serving as a formal pre-litigation step in debt collection and dispute resolution. It represents a documented attempt to reach an amicable settlement before pursuing legal action through the Saudi courts. This document must be carefully drafted to comply with both civil law requirements and Sharia principles, particularly regarding financial claims and interest calculations. It typically includes detailed information about the debt or claim, payment history, settlement terms, and response deadlines. The letter's "For Settlement Purposes Only" designation is significant as it indicates the sender's willingness to negotiate while preserving their legal rights. This document is particularly important in Saudi Arabia's legal system, where demonstrating attempts at amicable resolution can be relevant in subsequent legal proceedings.

1. Letterhead and Date: Official letterhead of the sending party, including full contact details and date in both Gregorian and Hijri calendars

2. Recipient Details: Full name and address of the recipient, including any relevant reference numbers

3. Subject Line: Clear indication that this is a demand letter for settlement purposes only

4. Debt Details: Precise description of the outstanding amount, origin of debt, and relevant dates

5. Legal Basis: Reference to the underlying agreement or basis for the claim

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

7. Demand Statement: Clear statement of the amount demanded and payment terms

8. Settlement Proposal: Specific proposed terms for settlement

9. Response Timeline: Clear deadline for response and consequences of non-response

10. Without Prejudice Statement: Clear statement that this is without prejudice to legal rights

11. Signature Block: Proper signature, name, and title of the authorized person