Basic Principle of Contract Law in the UAE

The contract is a binding document that recognizes and governs the rights and duties of the parties to the agreement. The contract is legally enforceable if it meets the requirements and approval of the law. A contract typically involves the exchange of goods, service, money, or promise to do or not to do any of those. “Breach of contract”, means that the law will have to award the injured party either the access of available remedies under the contract or other laws of applicable jurisdictions. By and large, the contract is an agreement enforceable by law.

The contractual relationship in the United Arab Emirates is regulated by the UAE Commercial code or UAE Civil code. In addition depending upon the nature of contractual relationships, there are other regulations such as real estate, rental, ship, financial, etc to have complied. Common law jurisdictions are in place in respect of contracts executed by invoking the DIFC or ADGM Legal Arrangements. Every contract shall qualify the requirement of the offer, acceptance, subject matter, competency of parties, consideration except in the case of a gratuitous contract, terms and conditions, etc. For writing rental agreement it is necessary to take advice from real estate lawyers in Dubai or the UAE to make your contract up to the UAE civil code.

The subject matter of the contract shall not conflict with the laws of the land. A contract could be declared void or voidable depending upon the invalidating factors existed within the contract or in on the execution of the contract. Even the contract could be void about where the effect would be as there is no contract at all.

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