UAE Civil Transactions Law

Article 735

Book Two: Nominate Contracts · Section Two: Contracts of Usufruct · Chapter One: Lease Contract · Part Four: Termination and Rescission of the Lease Contract

1. The insolvency or bankruptcy of the lessee shall not cause rent that is not yet due to become payable. 2. If the lessee becomes insolvent or bankrupt, the lessor may request the rescission of the lease contract if adequate security is not provided to secure the payment of rent that has not yet fallen due. 3. The lessee, if they become insolvent or bankrupt, and are not authorized under the lease contract to assign the contract or to sublet, may apply to the court for rescission of the lease contract. In this case, the lessor shall be entitled to fair compensation.

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