UAE Civil Transactions Law

Article 468

Book Two: Nominate Contracts · Section One: Contracts of Transfer of Ownership · Chapter One: Contract of Sale · Part Two: Effects of Sale · 1. Transfer of Ownership

1. If the price is deferred, the seller may stipulate that the transfer of ownership to the purchaser shall be suspended until full payment of the price, even if the subject matter of the sale has been delivered to the purchaser. 2. If the price is payable in installments, the contracting parties may agree that the seller shall retain a portion of the price as compensation in the event of rescission of the sale if all installments are not paid. Nevertheless, the court may, depending on the circumstances, reduce the agreed compensation. 3. If the purchaser has paid part of the price, they may not demand the delivery of the corresponding part of the subject matter of the sale if its division would result in a diminution in its value. 4. If all installments are paid, the transfer of ownership to the purchaser shall be deemed effective retroactively from the date of the sale.

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