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The Contract Letter Between Two Parties is a commonly used legal instrument in the United Arab Emirates for establishing formal business relationships and agreements. This document type is particularly valuable when parties need a more concise alternative to a full-length contract while maintaining legal enforceability. It's frequently used for business arrangements, service agreements, or commercial transactions where the terms can be clearly stated in a letter format. The document must align with UAE legal requirements, including compliance with the UAE Civil Code, Commercial Transactions Law, and relevant emirate-specific regulations. This format is especially popular in the UAE business environment due to its efficiency in documenting straightforward commercial arrangements while maintaining formal legal status. The document typically includes essential elements such as party details, terms and conditions, duration, and signature blocks, with the option to attach supporting schedules for additional details.

1. Letter Header: Date, reference number, and formal letterhead with complete contact details

2. Parties' Information: Full legal names, addresses, and registration details (if companies) of both parties

3. Salutation and Introduction: Formal greeting and clear statement of purpose for the contract letter

4. Subject Matter: Clear description of the contract's purpose and scope

5. Key Terms and Conditions: Essential terms including obligations, timelines, and payment terms

6. Duration: Contract period, start date, and end date if applicable

7. Signature Block: Space for signatures, names, titles, and company stamps (if applicable)