Contract disputes in UAE and how to avoid them

When you conduct business in the UAE, you get into a legal contract or agreement frequently. You get into a legal contract when you are purchasing, selling, giving subcontracts, hiring and many such day-to-day business activities.  Understanding contract law in the UAE is essential if you want to conduct any business transaction in the UAE. The disputes mostly occur due to the lack of planning, terms not being clear to either party, etc. There are several other reasons which may lead to contract disputes in the UAE. The parties may enter the contract without understanding that under the UAE law, the contract itself can be illegal. An illegal contract can be a risk for both parties.

Often it is also witnessed that the decision-makers are not equipped to understand the language and words used in a legal contract. Moreover, when they are non-specialist, they are reluctant to get involved in drafting, amending the legal agreements. Can you afford to ignore something, so critical to your business? Thus, it would be best if you had an expert contract lawyer in DubaiSharjahAbu Dhabi and other parts of UAE who can help you avoid contractual disputes.

Learn how a lawyer can help you in avoiding the contract disputes and factors you must consider:
  • Consult a lawyer: It is always advisable to contact your business or commercial lawyer in UAE before you enter a contract. The lawyer will check for 3 things in a contract; legitimacy, terms of the contract, and if the contract is in your interest. Your lawyer will also tell you about the outcome of the contract in case of a dispute.
  • Prepare a contract: A well-experienced lawyer or legal consultant is a must when you are drafting a contract. Many times, it is witnessed that people make verbal commitments to other parties maybe because they are related or share close ties. In the lack of any written agreement, the disputes reach a dead end as they cannot be argued legally. When you write a contract with the help of a lawyer, you can protect yourself from future loss.
  • Clarify misinterpretation: Before you say yes to a contract, it is crucial that you read and understand all the clause of contracts to avoid misinterpretation. Misinterpretation arises when two parties have different ideas about the contract. Make sure that you clearly understand all the terms, conditions and check if it protects your area of interests. It is always best when both the parties understand clearly what they are getting into, and a lawyer can simplify the difficult legal terms for you. The contract must follow the language pattern that is clear, readable and not ambiguous. The contract acts as your guideline throughout the contract period.
  • Know your rights and responsibilities: Rights and responsibilities in a contract simply mean, the expectations from both the parties. For example, you are a seller, and another party is a buyer, it’s your responsibility to deliver the goods on time and right of your buyer. Similarly, it is your right to receive the payment on time and responsibility of your buyer. Thus, your contract must clearly define the obligations of both parties, monetary details, specification of product or services, and whether the contract protects the concerns of each party.

Hire an experienced business or commercial lawyer in UAE to avoid all the disputes such as cost, payment, delivery which are often the root cause of business. You must clearly convey the rules and regulations which you may want to put up in your contract. Proper planning from your side can be beneficial for your business lawyer. Working together with your lawyer, you can avoid all kinds of future contract disputes.

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