Contract Law in United Arab Emirates

What is Contract Law in United Arab Emirates? UAE Contract Law means the legal framework that is designed to manage and govern the formation and execution of contracts in UAE. The aim is to enforce the contracts in UAE, lawfully. The basics or fundamentals of contract law in UAE is derived from, UAE Civil Code which is Federal Law No. 5 of 1985. It provides basic rules and principles which are applicable to contracts made in UAE. We will mention few must-known facts in this article about UAE Contract Law, its formation and implementations.

• Formation:

UAE contract law states that a contract needs to be accepted with mutual consent of parties to contract. An offer has to be made or created and that has to be accepted by all the parties. It also states that objective of the contract must be lawful, legal and legitimate. All the parties to contract must be competent enough to perform the obligations of the contract.

• Types:

Written Contracts: No verbal contract is considered by Law. Contract has to be written in an acceptable lawful format. It is recommended in UAE contract law, that contracts have to be in written format. Verbal contracts have no acceptance and can’t be enforced. It is hard to prove any legal binding made through verbal commitments.

• In a good faith:

Good faith is mandatory and it must be the part of contract. It refers to honesty between both parties. The honesty is required from beginning to end.

• Freedom:

UAE contract makes sure that both parties, do have the freedom while entering in to contract or accepting the lawful clauses of the contract. Coercion, pressure, and any influence on either party or both parties to enter in to any contract, will be considered a breach of contract law.

The UAE legal system allows parties a great degree of freedom to agree on the terms of their contract, provided the terms do not contradict public policy or morals.

• Contractual Obligations:

Contractual obligation is about the legal obligations of all the parties to contract. Once a contract is established then all the parties are legally bound. If any breach is found then either party has right to use the legal options.

• Languages

Languages can be English or Arabic or Whatever is selected by partiers to contract but Arabic must be the part of contract. Additionally, when a government work is required, court work is required or any official work is required then just ARABIC language will be considered and chosen by law, government authorities and all the government entities.

• Damages:

As per UAE Contract law, the compensation because of damages and losses incurred due to one party, is the right of another party or parties. Aggrieved party or aggrieved parties can contact the law through lawyers.

• Termination of Contracts:

UAE Contract law states that contract/contracts can only be, terminated when they are completed, expired, fulfilled, achieved or terminated with mutual consent. Apart from that force majeure, can also be a reason when contracts can be cancelled.

• Governing Law:

The law also states about the governing body and jurisdiction. Whether it has to be courts, or dispute resolution, it is all stated by UAE contract law.

• Applied Terms:

It also suggests or might suggest to parties, when intentions with local conventions found in the absence of contractual requirements. Understanding of applies terms will help creating a comprehensive contract.

• Types of Contracts: Employment or Commercial etc:

UAE contract law also throws the light on Employment Law, Commercial Law, Civil Law, etc. Now for the details you can contact our advocates and legal consultants.

It is a truth that all readers might not get the idea or knowledge they want to. Therefore, legal appointments are arranged for detailed knowledge and ideas. We have the best lawyers in Dubai and legal consultants.