UAE Civil Transactions Law

Article 137

Book One: Obligations · Section One: Sources of Obligation · Chapter One: The Contract · Part Four: Pillars, Validity, Options, and Types of a Contract · First: Elements of a Contract

1. Payment of earnest money upon concluding the contract indicates that the contract has become final and may not be withdrawn from, unless the agreement or custom provides otherwise. 2. If the contracting parties agree that the earnest money is a penalty for withdrawal from the contract, each of them has the right to withdraw. If the party who paid the earnest money withdraws, they shall forfeit it, and if the party who received it withdraws, they shall return it together with an equivalent amount.

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