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Rescind Contract Letter for United Arab Emirates

Rescind Contract Letter Template for United Arab Emirates

A Rescind Contract Letter under UAE law is a formal document that mutually terminates an existing contractual agreement between two or more parties. This document, governed by the UAE Civil Code (Federal Law No. 5 of 1985), outlines the terms and conditions of contract termination, including the effective date, settlement of outstanding obligations, and mutual releases. It serves as legal evidence of the parties' agreement to end their contractual relationship and provides clarity on post-termination responsibilities, making it particularly important in the UAE's diverse business environment where clear documentation of legal relationships is essential.

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What is a Rescind Contract Letter?

The Rescind Contract Letter is a crucial legal document used in the United Arab Emirates when parties mutually agree to terminate their existing contractual obligations. This document is particularly relevant in the UAE's dynamic business environment, where contract termination must comply with both civil law principles and Sharia law influences. The letter should be drafted in accordance with the UAE Civil Code (Federal Law No. 5 of 1985) and must clearly state the parties' intention to rescind, the effective date of termination, and any settlement terms. It is commonly used when business relationships change, projects conclude prematurely, or parties agree to end their obligations differently from the original contract terms. The document provides legal protection for all parties by clearly documenting the termination agreement and preventing future disputes.

What sections should be included in a Rescind Contract Letter?

1. Date and Address Block: Current date and full addresses of both parties, including relevant reference numbers

2. Subject Line: Clear identification that this is a Contract Rescission Letter and reference to the original contract

3. Original Contract Details: Specific details of the contract being rescinded, including date, parties, and subject matter

4. Rescission Statement: Clear statement of mutual agreement to rescind the contract and the effective date of rescission

5. Settlement Terms: Statement of any outstanding obligations, payments, or mutual releases

6. Return of Property: Details of any property, documents, or materials that need to be returned

7. Signature Block: Space for signatures of authorized representatives of both parties

What sections are optional to include in a Rescind Contract Letter?

1. Confidentiality Statement: Optional section confirming that confidentiality obligations survive the rescission, if applicable to the original contract

2. Partial Rescission Details: If only part of the contract is being rescinded, details of which provisions remain in effect

3. Governing Law Confirmation: While UAE law applies, this section can explicitly state this for clarity, especially in international contracts

4. Future Cooperation: Optional statement about future business relationships, if parties wish to maintain good relations

5. Dispute Resolution: Optional section specifying how any disputes relating to the rescission will be handled

What schedules should be included in a Rescind Contract Letter?

1. Schedule A - Financial Settlement Statement: Detailed breakdown of any financial settlements, payments, or refunds involved in the rescission

2. Schedule B - Property Return Checklist: List of items, documents, or materials to be returned by each party

3. Schedule C - Outstanding Obligations: List of any surviving obligations or responsibilities post-rescission

Authors

Alex Denne

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

Publisher

Ƶ

Document Type

Cancellation Letter

Sector

Sales

Cost

Free to use
Relevant legal definitions



















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Relevant Industries

Real Estate

Construction

Technology

Financial Services

Retail

Manufacturing

Healthcare

Education

Professional Services

Hospitality

Transportation

Energy

Telecommunications

Media and Entertainment

Import/Export

Free Zone Industries

Relevant Teams

Legal

Operations

Procurement

Commercial

Business Development

Compliance

Finance

Administration

Contract Management

Project Management

Corporate Governance

Risk Management

Relevant Roles

Legal Counsel

Contract Manager

Business Development Manager

Chief Executive Officer

Chief Operating Officer

Project Manager

Procurement Manager

Commercial Director

Managing Director

General Manager

Legal Director

Compliance Officer

Operations Manager

Account Manager

Company Secretary

Finance Director

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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