The UAE is a rapidly developing country and has attracted many foreign investors. However, it is essential to remember that any business activity in the UAE is subject to its legal framework. This article will provide 5 legal points to remember when it comes to UAE contract law.

1. Written agreements are necessary

In the UAE, written contracts are preferred over verbal agreements. A written contract should include the terms and conditions of the agreement, including the price, delivery terms, and payment terms. In case of a dispute, a written agreement helps in providing evidence of the agreement between the parties.

2. UAE law governs contracts

The UAE has a civil law system, which means that UAE law governs contracts entered into in the UAE. All contracts should be in compliance with the UAE laws and regulations. For example, if a foreign company enters into a contract with a UAE company, the contract should be in compliance with the UAE Commercial Transactions Law.

3. Legal translation of contracts

In the UAE, Arabic is the official language. Therefore, contracts entered into in the UAE should be in Arabic. If the contract is in another language, it should be legally translated into Arabic and certified by a legal translator. The Arabic version of the contract will be considered the official version in case of a dispute.

4. Proper legal representation

When entering into a contract in the UAE, it is essential to have proper legal representation. A qualified lawyer who is familiar with UAE contract law can help in drafting a contract that is in compliance with UAE laws and regulations. It is also advisable to have legal representation in case of a dispute.

5. Payment terms

Payment terms are an essential aspect of any contract. In the UAE, a significant part of business activity is based on credit arrangements. It is essential to clearly define the payment terms, including the due date, interest rate, and penalties for late payments. It is also advisable to include a payment guarantee to ensure that the payment will be made.

In summary, the UAE contract law is crucial when entering into any business activity in the UAE. Written contracts, compliance with UAE law, legal translation, proper legal representation, and payment terms are the significant legal points to remember. Following these points will help in ensuring a successful business venture in the UAE.