The breach of contract is when either party fails to comply with the rules of the contract. Therefore, a contract between the parties or among the parties always play a vital role. The United Arab Emirates (UAE) has lawyers specializing in different contracts and agreements. Without any civil or commercial contracts, the transactions are unsuccessful. A separate UAE law governs the obligations of the contracts and penalize individuals if the contract is breached. The breach of contract laws is applicable in business deals, property transactions, and employment contracts. To understand the legal repercussions of the breached contract, the professional lawyers in Dubai can assist you and work on dispute resolution mechanisms in the UAE. Let’s explore the types of contracts:
Types of Contract Breaches
The UAE has an amazing legal system to secure the employees and employers at all times. Industry’s top legal professionals make this. Certain types of breaches are recognized under the UAE Contracts Law:
- Material Breach
When the main part of the contract has not been delivered or if the delivery of goods and services was not made on time, it is a material breach.
- Minor or Partial Breach
This kind of breach is referred to little obligations that are not fulfilled by either party. However, it does not affect the contract as a whole.
- Anticipatory Breach
Failure to fulfill the obligation by the due date and that too done intentionally is considered to be an anticipatory breach.
- Fundamental Breach
This is a serious kind of breach where the affected party can seek damages or terminate the contract if any fraudulent or misinterpretations are made.
Every breach of contract has different legal implications, however, the lawyers in Dubai can guide individuals to deal with such cases.
- Legal Solutions for Breach of Contract
The violation of contracts is a serious issue in the UAE. Nevertheless, the UAE Civil Code has created remedies for the affected parties of the breach:
Performance Based Remedy
If any party does not meet the contractual obligation, the other party can demand to enforce the contract as it was originally agreed. Usually, these cases are related to assets or property, especially when money is involved.
Termination of Contract
The contract can be terminated by the affected party. Article 267 says that both parties can agree earlier, that the breach of contract will lead to termination, automatically. The Best Dubai law firm can help individuals in drafting these contracts in order to safeguard the interests of their clients.
Compensation for Damages
The UAE government ensures to protection of the interests of everyone under its legal system. Individuals can claim financial compensation through lawyers. Often, the breach of contract can lead to actual and financial damages. The courts will look into the case to confirm the amount of compensation as per the findings.
Injunctions and Court Orders
The court can issue injunctions to avoid further damages to the affected party. However, the court pressurizes the breaching party to comply with the legal terms.
Cases of Breach Handled in the UAE
The lawyers in Dubai need to have a clear understanding of the types of breaches that can happen in the UAE contracts. Further, they should know that every breach of contract leads to a different dispute resolution. The extended role of the legal professionals in the UAE involves; sending legal notices, drafting negotiation agreements, representing clients in the court, and ensuring international legal standards throughout the case.
In some cases, Dubai law firms have experts who offer alternative dispute resolution (ADR). It means that the court does not have to intervene every time. Settlements can be made amicable without the intervention of the courts. Al Shaiba Advocates and Legal Consultants is of the Best Dubai Law Firms, operating all over the United Arab Emirates.
Why Contracts are Important in the UAE?
The business transactions are impossible unless a clear contract has not been drafted. The contract has all the terms including the terms of termination of the contract. It protects both parties, ensuring the business transaction is as per the UAE laws.
UAE Sectors Affected by Breach of Contract
There are several sectors of the UAE where the breach of contract is crucial. These sectors involve financials, therefore, business transactions without proper contracts are impossible. Sectors like; real estate, corporate contracts, retail, and technology totally rely on contracts. The Dubai law firms have legal remedies to defend the contract claims for their clients. Contracts are the essence of any legal matter all over the world. Absence of valid contracts are not an excuse.
Managing Disputes for Breach of Contracts
There could be disputes that may arise due to contract breaches. However, these disputes can be resolved through civil courts, where you can even appeal. Having a lawyer at this stage is crucial. Secondly, many commercial disputes are resolved through arbitration. The intervention of commercial and financial institutions makes the situation better. In some cases, mediation also works when the disputes are settled amicably.
Frequently Asked Questions (FAQs)
1. What is the time limit for filing a breach of contract case in the UAE?
You can make a case of breach of contract within 15 years. Commercial and labour contracts may have shorter deadlines than other contracts. Therefore, always look for quick legal services in the UAE.
2. Can oral contracts be enforced under UAE law?
You may do verbal contracts, but they will not have the same importance as written ones. It is recommended to have written agreements and contracts whenever you are working in the UAE.
3. What if the breaching party is outside the UAE?
International intervention will be required if the breach of contract is done outside the UAE.
4. How long does it take to resolve a breach of contract case in Dubai?
Depending on the case type, the issue of breach of contract can take some months and even longer.
5. Can I terminate a contract immediately after a breach?
Immediate termination is possible if already mentioned in the contract or if there has been a fundamental contract breach.