A Contract Is a Binding Legal Agreement

UAE contract laws

A contract is a binding legal agreement that is enforceable in a court of law. That is to say, a contract is an exchange of promises for the breach of which the law will provide a remedy. It must be supported by consideration. Voluntary entered into, by parties having capacity to contract, to do a legal act or acts.

Here are some cases about the contract laws:

1. Breaking a tenancy contract

• Published: 19:01 September 27, 2012

SUBJECT

Housing and rent

I rented a villa in Dubai last February 2012. My agreement is for two years. I have paid all the installments to the Real Estate Office in postdated cheques. The contract

will expire on February 2014; due to some problem I’m facing I want to break the contract. And I have sent a letter to the Real Estate Office in this regard. The Real Estate Office has rejected it in the pretext that the agreement is for two years. And they have refused to return the remaining installments. For your information, in the Tenancy Agreement there is a clause that gives the right for both parties, landlord and tenant, to break the contract after six months on condition that either party will give a one month notice. My question is, is it possible to break this contract with the reference to this clause mentioned? Will the Municipality Rental Committee accept

this clause? Please clarify. The Real Estate Office told me I have to provide a new tenant to replace me, and then only can I break the contract. Please advise. Thanks.

Facts: The tenant rented a villa for 2 years period. After a while, he tried to break the contract. But the real estate company refused. Although, there was a clause in the agreement that gives the right for both parties to break the contract.

Issue: Will the tenant be able to break the contract? And. Does the tenant have to provide a new tenant to replace himself?

Decision: Under the clause mentioned in the agreement the tenant has the right to break the Contract after he provides a Real Estate company with a one-month notice. And the tenant doesn't have to find a new tenant to replace himself. If the real state didn’t pay him back, the tenant has the right to file a complaint against it.

2. Worker must compensate employer

• Published: 15:52 March 9, 2013

SUBJECT

Employment

A reader from Dubai asks: I have been working in company