Document background
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.
