Contract Law
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Contract Law
Contract law in the UAE is governed primarily by the Civil Transactions Law (Federal Law No. 5 of 1985), commonly referred to as the UAE Civil Code. This law outlines the fundamental principles and requirements for contracts within the country. Here are some key points about contract law in the UAE.
Formation of Contracts
- Offer and Acceptance: A valid contract in the UAE requires an offer and acceptance. Both must be clear and correspond to each other.
- Consent: The consent of the parties must be genuine and free from any defects such as duress, mistake, or fraud.
- Legal Capacity: Parties entering into a contract must have the legal capacity to do so, which generally means they must be of legal age and sound mind.
- Lawful Subject Matter: The subject of the contract must be lawful, and the purpose of the contract must not violate public order or morality.
Key Elements of a Contract
- Mutual Consent: Both parties must agree to the terms of the contract.
- Lawful Object: The object or purpose of the contract must be lawful.
- Consideration: While consideration (payment or compensation) is essential in most contracts, it is not always a strict requirement under UAE law.
Types of Contracts
- Nominate Contracts: These are contracts recognized by specific provisions in the Civil Code, such as sale, lease, and agency contracts.
- Innominate Contracts: These are contracts not specifically mentioned in the Civil Code but are still enforceable as long as they meet the general requirements.