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.
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.