Commercial Contracts 2024

What are the main laws governing commercial contracts in this jurisdiction?>>🔗

The main laws governing commercial contracts in the United Arab Emirates (UAE) are primarily based on Federal Law No. 5/1985 On the Civil Transactions Law of the United Arab Emirates State and Federal Decree-Law No. 50/2022 On the Promulgation of the Commercial Transactions Law which abrogated Federal Law No. 18/1993 Issuing the Commercial Transactions Law. These laws establish the foundational principles for contract formation, performance, enforcement, and termination. Federal Law No. 5/1985 provides general principles applicable to all types of contracts, including provisions on offer and acceptance, the validity of consent, capacity, object and cause of contracts. Federal Decree-Law No. 50/2022 specifically deals with aspects related to commercial transactions, addressing issues such as commercial agency, sale of goods and commercial obligations. Additionally, Federal Decree-Law No. 46/2021 On Electronic Transactions and Trust Services which abrogated Federal Law No. 1/2006 Concerning Electronic Transactions and Commerce regulates the use of electronic contracts and signatures, ensuring their recognition and enforceability.