Do you know how to terminate a commercial contracts?

October 11, 2023 0 Comments

Yet,Do you know how to terminate a commercial contracts? Articles the frequency of contractors who are unaware of the rights and repercussions of terminating a commercial contract within UAE which convinced the Legal Consultants in Dubai to dedicate this article on the issue of termination and procedure pertaining to the same.

In below-mentioned paragraphs, you will study the legal options and redress available for terminating a commercial contract in consonance with UAE laws. Federal Law Number 5 of 1985 on UAE Civil Code talks about the dissolution of contracts under Articles 367-273. Where in, Article 267 clearly highlights the three different ways under which the parties can terminate the contract as follows:

a. By mutual consent;

Most contracts within UAE refer to a termination clause wherein contracting parties agree to dissolve the contract upon happening of a certain event especially breach 상조회사 해약 해지 of the terms of the contract. The Civil Code subsequently enable the parties to terminate the contract upon mutual consent. However, the parties must draft this clause prudently and in harmony with UAE law. In the event termination is due to breach of any clause or non-performance, the provision may allow the party to terminate without prior notice, else the notice is mandatory in accordance with Article 271 of the Civil Law. Nonetheless, parties may terminate the contract unilaterally as per their convenience by an explicit clause in the contract.

b. Order of the court;


As the name suggests, the parties may seek termination upon reaching out to the relevant authorities which may be Court or Arbitration Institute as the contract suggests. This option shall also be exercised in the absence of a termination clause in the contract.

c. By operation of the Law.

Under the said option, the law governing the contract shall be considered while terminating the contract according to the type of contract. Different types of contract persist in UAE which if requires termination shall refer to the specific laws.

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