Termination of Agreement under the UAE Law and Judicial Precedent

Abstract

The article examines provisions related to the termination of contracts in the UAE Civil Transactions Law and illustrates how the UAE Courts interpret the rules laid down by this law. These provisions do not repeal any special law related to the same subject; they only relate to the subject of the contract in general. In order to express the meaning of termination, the UAE contract law uses the Arabic word faskh. Based on the manner of termination, the UAE law provides four types of termination: \n1. Termination by mutual agreement after the conclusion of the contract; \n2. Termination by judicial decision; \n3. Termination by prior agreement; \n4. Termination by law; \nAmong these types, termination by judicial decision is regarded as a general rule applicable to all disputes occurring between individuals. However, in accordance with article 274 of the UAE Transactions Law, the effects of all types of terminations are the same on the contracting parties and the third party, except when a contract is terminated by mutual agreement after its conclusion (iqala). The effects of iqala on the third party vary from other types of termination.