Contract and agreement in Dubai

Contract law in Dubai is governed by Federal Law No. 5 of 1985 on Civil Transactions Law ("CTL") and its subsequent amendments, as well as other applicable laws and regulations. The CTL sets out the basic principles of contract law in Dubai, including the following:

1. Offer and Acceptance: A contract is formed when one party makes an offer to another party and that offer is accepted by the other party. An offer must be sufficiently definite and complete to enable the other party to accept it.
2. Capacity: To enter into a contract, a party must have the legal capacity to do so. In Dubai, minors, those lacking legal capacity, and those who are mentally incapacitated cannot enter into a contract. Additionally, companies must have the authority to enter into contracts on their behalf.
3. Form: A contract may be concluded in any form, including orally or in writing, unless the law requires a specific form.
4. Consideration: A contract must involve consideration, which is typically a payment or exchange of something of value.
5. Object: The object of a contract must be lawful and possible. A contract that involves an illegal act or an act that is impossible to perform is void.
6. Performance: Both parties are required to perform their obligations under the contract in accordance with its terms.
7. Breach: If one party breaches a contract, the other party may be entitled to damages or other remedies.
8. Termination: A contract may be terminated by mutual agreement, by the operation of the law, or by a court order.

In addition to the above principles, there are other laws and regulations that may affect contract law in Dubai, including the Commercial Transactions Law, the Labor Law, and various regulations related to specific industries. It is important for individuals and companies doing business in Dubai to seek legal advice to ensure that their contracts comply with applicable laws and regulations.

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