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.
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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 Original Contract Details: Specific details of the contract being rescinded, including date, parties, and subject matter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
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 Partial Rescission Details: If only part of the contract is being rescinded, details of which provisions remain in effect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
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
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