Each nation has their legal system and channel to pursue; the same holds for Dubai and other places in the UAE, as laws are different and also, there is a combination of the Islamic Sharia Law combined with various aspects of the conventional legal system.
There are several differences when it comes to contracting laws in the UAE when compared to other nations across the globe, although unfortunately, there are still several companies that draft contracts and other official documents in the US or the UK where the laws are very different. This can lead to bigger problems later, which is why it is prudent to not just thoroughly research & understand the basic way the law functions in the country, but also to have access to a qualified professional within the country for the best job while adhering to the stringent regulations of a legally binding document.
Some of the same terms may have a different meaning in different legal systems, and few of them are, however not restricted to, Memorandum of Understanding, Good Faith, and ascertaining fraudulent behavior, among others.
Good Faith
This is an ambiguous aspect for most people outside the UAE; however, these terms are most frequently used during the signing of the contract and it emphasizes the factor that one party does not abuse or cause unjustifiable damage to the other party and that both parties act practically, reasonably and moderately.
The following is from Article 246 of the UAE Civil Code which states, “A contract must be performed following its contents, and a manner consistent with the requirements of good faith.” The unfortunate news is that the law does not explicitly state what is considered to be good faith; it is widely assumed that the law governs the interests of both parties at the time of entering a contract and for the duration of the same. Lawyers in Dubai can easily draft a good faith contract or agreement when you are doing business in the emirate.
What Pets are Legal in Georgia-Exotic Animal Laws by State
Memorandums of Understanding (MoUs)
This component of the contracting law is the opposite of what is widely accepted across the globe. An MoU is considered to be vague and not explicit in the UK. The courts deem the MoU to be a document containing general terms, before entering into a comprehensive agreement with the same party soon.
This is different in the UAE, as MoUs are used to chalk out the explicit details of the agreement, which is signed at a later date. The Dubai Court also has the authority to complete the terms of the contract, by filling in the detail at a later stage. Also, the courts in the UAE take a step further and states that if the deal is not finalized or completed then it is acting in bad faith, and also a breach of contract. The same rules apply if one or both parties speak with the third party.
Fraudulent behavior versus misrepresentation
In the UAE, misrepresentation is denoted by necessary fraudulent behavior, whereas, in the UK, misrepresentation can occur when one of the two parties signing a contract, based on false assertion and misrepresented facts. This wrong representation can be either innocent or negligent, as per the law of the nation.
The UAE takes a grimmer view and the Civil Code, Article 185, UAE states that the misrepresentation is when one of the parties involved in the contract deceived the other, by fraud, words, or fraudulent deeds, leading to a mislead consent on matters or terms that they may not have agreed to otherwise. The UAE law also states that if one party is aware and conscious of the misrepresentation by fraud, and does not mention and rather, consents to it, they will not be allowed to terminate the contract.
While these are only a few of the terms that mean completely different things in different countries, law firms in Dubai and the surrounding areas are the best options, when living in the country. It is considered to be more troublesome to correct a wrongly written contract, rather than getting the facts and figures right from the start.
