Concept of Breaching of Contract in UAE

 

A contract solemnizes an agreement on a specific matter between two or more parties. It’s common to enter into a contract for commercial transactions, the purchase or sale of real estate, employment, lease, construction, and similar matters. However, there are times when a breach of contract can occur, which means that one or more parties have failed to fulfill the obligations stated in the document. Breach of contract in the UAE is one of the most confusing issues under contract law. However, you can address the matter with a qualified lawyer.

 

Understanding breach of contract

 

Contract Law of the UAE provides solutions for the affected party in case of breach of contract in the UAE. The laws and regulations require the claimant to evaluate the type of breach and determine the rationale behind the failure to adhere to the contractual obligations. Breach of contract can be substantial or fundamental or based on a condition precedent or some other issues depriving an opposing party to perform their obligation under the contract, resulting in a violation.

 

It’s not rare for a party to fail to fulfill its obligations, resulting in a breach. It’s one of the most common occurrences observed in commercial contracts. Such incidents have become more common due to economic uncertainties in all industries, especially during the COVID-19 pandemic.

 

Nonetheless, the government has implemented and issued laws and regulations to deal with any breach of contract in the UAE. The law gives the right to non-breaching parties to take legal actions to mitigate losses. Likewise, breaching parties have the right to represent their reasons. This way, the law ensures the interest of both parties.

 

Filing a lawsuit

 

If you want to file a legal suit under breach of contract in the UAE, you need to understand the elements of the claim, such as the contract’s existence, the plaintiff’s performance, and proof of failure. The plaintiff is expected to send a written notification to the defendant before filing a case. Navigating contract law will be easier if you have a qualified and competent lawyer to back you up.

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