Each of the contracting parties shall fulfill what the contract has bound him to do. The contract shall be implemented according to the provisions contained therein and in a manner consistent with the requirements of good faith.
When does a party fulfill a breach of contract?
Breach of contract in the UAE occurs when one party fails to fulfill its contractual obligations without a valid legal justification. The UAE Civil Code governs contractual matters and provides provisions for addressing breach of contract situations.
KEY POINTS:
1- Contractual Obligations:
A contract is a legally binding agreement between parties, and each party has certain obligations and rights as outlined in the contract. These obligations may include payment of a certain amount, delivery of goods or services, meeting deadlines, etc.
2- Types of Breach:
Different types of breaches can occur in contract law, including:
a- Material Breach:
This is a significant and fundamental breach that goes to the core of the contract, resulting in the injured party being deprived of the main benefits of the contract.
b- Minor Breach:
Also known as a partial breach, this occurs when a party fails to fulfill a minor or ancillary obligation under the contract.
c- Anticipatory Breach:
This occurs when one party indicates an intention not to fulfill their contractual obligations before the agreed-upon time for performance.
In bilateral contracts, if one of the parties does not perform his contractual obligations, the other party may, after serving a formal notification to the debtor, demand the performance of the contract or its rescission.
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3- Remedies for Breach of Contract:
In the event of a breach of contract, the injured party may seek various remedies, including:
- Specific Performance: The court can order the breaching party to fulfill their contractual obligations as originally agreed upon.
- Damages: The injured party may seek monetary compensation (damages) for the losses suffered due to the breach.
- Termination: The non-breaching party may have the right to terminate the contract and be relieved of any further obligations.
- Liquidated Damages: If the contract includes a clause specifying a predetermined amount of damages in case of a breach, the injured party can claim those damages.
Legal Proceedings: In the event of a breach of contract, the injured party may initiate legal proceedings by filing a lawsuit in the relevant UAE court. It is advisable to seek legal advice to understand the specific procedures and requirements.
It’s important to note that the specifics of breach of contract cases can vary based on the particular circumstances and the terms of the contract.
Hi team,
There has been a breach of contract by not following 30 days notice period by partner company. Would like to know how I can be compensated for the damages.
Hello I am working in UK. I rented out my flat in Dubai under a registered Ejari contract with specified additional terms that any renewal or extension beyond the expiry of Ejari term 30 3 2024 shall only be at a minimum of 55000 AED. Now tenant has wrongfully obtained a favourable RDC Offer and deposit case to automatically renew under the same start rental of 50000.
How can I violate my own contract agreement and issue new Ejari? Isn’t that illegal??
Hello. we are Mauritian citizens and we have been to Dubai recently on holiday which we now deeply regretted. We want to seek your advice regarding a contract that we signed in Duba regarding a so called ‘Lifestyle Luxury Vacation’ wanting to give you some offers and get your contact information. Once you reached Dubai airport, it has been noted that they are only approaching travellers who have citizenship from Western country. We have signed the contract under duress and when we got back to our hotel that we later realised that we have been scammed. The RCI membership is USD 16,100 and we only paid USD 500 as initial payment. They promised you for gift and lunch at the airport and never mentioned that they want to sell an RCI membership. It was only later after we signed that we realised that the price for service charges and hotel do not make any sense as it is costing much more we would have paid if not opting for entering this type of contract as this is supposed to be an exclusive once in a lifetime offer from Al-Habtoor himself. And you have to sign the 100 pages contract on the spot, and you can’t sign later. we want to cancel the contract. The next day that after we signed our contract, we went to Hilton hotel and met a lady. we explained that we wanted to cancel the contract and wanted our money back and she proposed that she can downgrade the cost of USD 16100 to USD 4000 so that we don’t lose the money. She did not want us to cancel the contract and did not want to give us our money back and said she would take legal action. As per the clause of the contract, if you want to cancel the contract you cannot opt out as you have to pay 20% penalty charges. we realised later on that we definitely want to cancel this kind of contract and want our money back. We don’t want to go forward with it. Thanks to advise on same.