UAE Civil Transactions Law — articles 901–1000

The agent authorized for litigation shall be deemed dismissed if they make an acknowledgment on behalf of their principal outside the court. They shall also be removed if the admission is excluded from the agency, and th…

If the agent authorized for litigation acts within the scope of the agency after acquiring knowledge of their dismissal, they shall be liable. If they act before becoming aware, their act shall be effective.

1. The sub-agent shall be dismissed by the death or bankruptcy of the original principal, and upon the dismissal by the principal or by the agent. However, the sub-agent shall not be dismissed by the dismissal or death o…

A deposit is a contract whereby the depositary undertakes to take delivery of a property from the depositor, to safekeep it, and to return it in specie.

For the contract to be valid, the deposited property shall be a property capable of being subject to possession.

1. The depositary shall take delivery of the deposit, either actually or constructively. 2. A deposit is a trust (amānah) held by the depositary, and the latter shall be liable for it if it perishes due to a cause attrib…

The depositary may not request remuneration for the safekeeping of the deposit or rent for the place where it was placed, unless this was stipulated upon deposit or there is a special custom to that effect.

The depositary shall exercise the care of an ordinary person in the safeguarding of the deposit and shall place it in a place of custody of the like. The depositary may safeguard it personally or through a person with wh…

The depositary may not place the deposit with a third party without the permission of the depositor, unless compelled to do so by an urgent necessity. If they place it with a third party with the permission of the deposi…

The depositary may not use the deposit or create any right in favor of a third party over it without the permission of the depositor. If they do so and it perishes or its value diminished, they shall be liable.

If the depositary travels with the deposit without the permission of the depositor, where it was possible to deposit it with a custodian, and it perishes or is damaged during the travel, they shall be liable for it. If t…

1. The depositary shall return the deposit and deliver it to the depositor at the place of deposit upon request, unless otherwise agreed. 2. If the deposit perishes or its value diminished without any transgression or ne…

The depositary shall return the benefits, fruits, and yields of the deposit to the depositor.

If the depositary mixes the deposit with something that cannot be distinguished therefrom and is not similar thereto in type and quality, they shall be liable for it upon such mixing. If it can be distinguished therefrom…

If the deposit is lost or stolen from the depositary due to their violation of the method of safekeeping agreed upon or that which is customary for the safekeeping of property of the like, or due to forgetting it at the …

If there are multiple depositaries and the deposit is indivisible; it may be kept with one of them with the consent of the others or by rotation between them. If it is divisible, it may be divided among them, and each de…

If the depositor is untraceably absent, the depositary shall safekeep the deposit until their death or life is ascertained. If the deposit is liable to perish with the passage of time, they shall request permission from …

If two persons deposit a joint property of theirs with another, and one of them requests the return of their share in the absence of the other, the depositary shall return it if the property is fungible, and shall refuse…

1. If the depositary dies and the deposit is found in kind in their estate, it shall be deemed a trust in the hands of the heirs, who shall return it to its owner. 2. If the heirs prove that the depositary had returned t…

1. If the depositary dies and an heir disposes of the deposit by any act that effects a transfer of ownership and it perishes, its owner shall have the option to hold either the disposer or the transferee liable for its …

The depositor undertakes to pay the agreed remuneration to the depositary if the deposit is for consideration.

1. The depositor shall reimburse the depositary for what the latter has expended in the safekeeping of the deposit with the depositor's permission. 2. If the depositor is absent, the depositary may refer the matter to th…

1. If the depositary incurs expenses on the deposited property without the permission of the depositor or the court, they shall be deemed to have acted gratuitously. 2. The depositary may, in cases of urgency or necessit…

The depositor shall bear the expenses of delivering and returning the deposit, and shall be liable for any damage suffered by the depositary as a result of the deposit, unless it arises from a cause attributable to the d…

If the deposit becomes subject to entitlement and the depositary has been held liable in respect therefor; they have the right to recourse against the depositor for the amount paid.

If the depositor dies, the deposit shall be delivered to their heirs with the permission of the court.

If the deposit is a sum of money or any other thing that perishes by use, and the depositary is authorized to use it, the contract shall be deemed a loan.

1. Proprietors of hotels and similar establishments shall, with respect to the duty of care incumbent upon them for the safekeeping of the property brought by travellers and guests, be liable even for acts committed by p…

1. The guest shall notify the hotel proprietor or the person in charge of the theft, loss, or damage of the item immediately upon becoming aware thereof. If they delay the notification without excuse, their rights shall …

1. Either the depositor or the depositary may terminate the contract whenever they wish, provided that the termination does not occur at an inappropriate time. 2. If the deposit is for remuneration, neither party has the…

Sequestration is a contract whereby the sequestrator undertakes to safekeep and manage a disputed asset and to return it with its proceeds to the person who is proven to be entitled thereto.

If the parties agree to place the property in the hands of two or more persons, none of them may act alone in its safekeeping or management or in the disposition of its proceeds without the consent of the others.

1. One of the parties in dispute over an asset may, in the absence of agreement, request the court, in order to avert an imminent danger or on the basis of a just cause, to appoint a sequestrator to take possession of su…

Judicial sequestration of endowment property is permissible in the following cases: 1. If the endowment is vacant or a dispute arises between its administrators, or if a lawsuit is instituted for the removal of the admin…

If the parties to the dispute do not agree regarding the person of the sequestrator, the court shall appoint one.

The property in the hands of the sequestrator is a trust, and they may not exceed the limits of the assigned mandate, otherwise they shall be liable.

The agreement or the decision imposing the sequestration shall determine the rights and obligations of the sequestrator and the scope of their authority; otherwise, the provisions of the deposit contract and the agency c…

1. The sequestrator is obliged to preserve the property entrusted to their sequestration and to manage this property, and shall exercise, in all such matters, the care of an ordinary person. 2. The sequestrator may not d…

The sequestrator may not, in matters other than administration and preservation, act except with the consent of the parties to the dispute or with the permission of the court, unless there is an urgent necessity whereby …

The sequestrator shall provide the relevant parties and the court, as the case may be, with the necessary information, reports, statements of account, and documents related to the execution of their mission, and shall su…

The sequestrator may recover the amounts spent in performing their duties to the extent customary.

The sequestrator is entitled to a wage for the like of their work if the agreement or appointment decision so provides. If there is no provision in this regard, they are entitled to a remuneration of the like, unless it …

The sequestrator may withdraw from their mission at any time, provided they notify the concerned parties and continue performing the acts already commenced until they reach a stage at which no harm is caused to the parti…

If the sequestrator dies, becomes incapable of performing the duties entrusted thereto, or a dispute arises between them and one of the interested parties, the court shall appoint another sequestrator upon the request of…

The sequestration shall end by agreement of the interested parties, by a court decision, or upon the expiry of its term if it was for a limited period. The sequestrator shall then promptly return the property entrusted t…

1. A competition is a contract whereby a person undertakes to offer a prize to whoever wins a race in which winning depends on the performance of the competitor. 2. It is valid in a competition for the commitment to the …

The validity of a competition contract is subject to the following conditions: 1. The prize shall be known, and the obligor shall be specifically identified. 2. The prize may be cash, in-kind, a due or deferred debt, or …

1. A person may undertake to pay a periodic life annuity without consideration. 2. If the obligation relates to education, treatment, or maintenance, it shall be fulfilled according to custom practice, unless the commitm…

The disposition establishing the obligation to pay an annuity for life shall not be valid unless it is made in writing, without prejudice to any special form required by the law for contracts of donation.

1. The obligation for an annuity may be for the life of the obligor, the obligee, or any other person. 2. The obligation is deemed to be established for the life of the obligor, unless otherwise agreed. 3. The obligation…

If the obligor fails to fulfill their obligation, the other party may seek specific performance of the contract.

If the annuity is established for the life of the obligor and they die before the obligee, the obligee shall be entitled to a portion of the annuity that is proportionate to the period that has elapsed until the death of…

The provisions of this Chapter shall apply without prejudice to the provisions of special laws.

Any agreement that contravenes the provisions of this Chapter shall be void, unless it is to the benefit of the insured or the beneficiary.

Insurance is a contract whereby the insurer undertakes to pay the insured or the beneficiary a sum of money, a periodic income, or any other financial consideration in the event of an accident, the occurrence of a condit…

The subject of insurance may be any legitimate interest a person has in the non-occurrence of a specified risk.

Anything that contravenes public order or public morals may not be the subject of insurance.

The following conditions in an insurance policy shall be void: 1. The condition that provides for the forfeiture of the right to insurance due to a violation of laws, unless the violation involves an intentional crime. 2…

1. An agreement may be made to exempt the insurer from indemnity if the beneficiary acknowledges liability for the occurrence of the insured risk or pays compensation to the injured party without the insurer's consent. 2…

The insurer who has paid compensation for damage shall be subrogated to the rights of the insured in claims against the person who caused the damage for which the insurer is liable, up to the amount of compensation paid,…

The insured is obligated to: 1. Pay the agreed amounts within the period specified in the contract. 2. Disclose, at the time of concluding the contract, all information that the insurer requests for the purpose of assess…

1. If the insured, in bad faith, conceals a matter or provides an incorrect statement in a manner that diminishes the materiality of the insured risk or leads to a change in its subject matter, or if they fraudulently br…

The insurer shall only be liable to indemnify the insured for damage resulting from the occurrence of the insured risk, provided that it does not exceed the sum insured.

The insurer is obligated to pay the compensation or the amount due to the insured or the beneficiary in the manner agreed, upon the occurrence of the risk or upon the maturity of the term specified in the contract.

The insurer's obligation under civil liability insurance shall not arise unless the injured party asserts a claim against the beneficiary after the occurrence of the event giving rise to such liability.

Claims arising from an insurance contract shall not be admissible after the lapse of three (3) years from the date of the event giving rise to such claims, unless the law provides otherwise. However, this period shall no…

1. Several persons may engage in cooperative Takaful (solidarity) insurance operations through their participation with cash contributions for the purpose of achieving Takaful and cooperation among a group of participant…

1. The insurer in fire insurance is liable for all damages arising directly from the fire, whatever its cause, or from an incipient fire that may develop into a full fire, or from a fire risk that may materialize. 2. The…

1. The insurer is liable for fire damage that occurs due to the non-intentional fault of the insured or the beneficiary. 2. The insurer is not liable for damages caused intentionally or through gross fault by the insured…

The insurer is liable for fire damage caused by the insured's dependents, whatever the type and extent of their fault.

The insurer is liable for damages resulting from the fire, even if the fire arose from an inherent defect in the insured item.

1. Any insured who insures an item or an interest with more than one insurer shall notify each of them of the other insurance contracts, the value of each, and the names of the other insurers. 2. The aggregate sum insure…

If an item or interest is insured with more than one insurer for amounts that in total exceed the value of the insured item or interest, each insurer shall be obligated to pay a share proportionate to the ratio between t…

Fire insurance that is contracted on the insured's movables as a whole and which are present at the time of the fire in the places they occupy shall extend to items belonging to members of the insured’s family and to per…

1. If the insured item is encumbered by a pledge, mortgage, or other security in rem, such rights shall attach to the insurance proceeds payable to the insured under the insurance contract. 2. If these rights referred to…

The insurer shall be subrogated by operation of law for what they have paid as compensation for the fire in the claims that the insured may have against the person who caused the damage from which the insurer's liability…

The insurer in life insurance is obligated to pay to the insured or the beneficiary the amounts agreed upon the occurrence of the insured event or upon the expiry of the term stipulated in the contract, without the need …

The conclusion of a life insurance contract on the life of a third party requires their written consent before the contract is concluded. If they lack legal capacity, the contract shall not be validly concluded without t…

1. The insurer shall not be bound to pay the insurance amount if the insured commits suicide. However, the insurer shall return to the beneficiary an amount equal to the value of the insurance reserve, unless the benefic…

1. The insurer is released from their obligations if the insurance is on the life of another person and the insured intentionally causes the death of that person or the death occurs at the instigation of the insured. 2. …

1. The insured may stipulate that the insurance amount be paid to specific persons in the contract or to such persons as they may designate later. 2. If the insurance is for the benefit of the insured's spouse, children,…

The insured who has undertaken to pay periodic premiums may terminate the contract at any time by giving written notice to the insurer of their wish, and they shall be discharged from liability for subsequent premiums.

1. Incorrect statements regarding the age of the person on whose life the insurance is taken, or any mistake therein, shall not result in the nullity of the insurance contract, unless the true age of the insured exceeds …

If the insurer pays the insurance amount in a life insurance policy, they shall not have the right of subrogation to the rights of the insured or the beneficiary against the person who caused the insured event or the per…

The amounts agreed to be paid upon the death of the insured shall not form part of the estate of the insured.

Suretyship is a contract whereby a person adds their patrimony to that of a debtor for the performance of an obligation, by undertaking, to the creditor, to perform it if the debtor fails to do so.

1. Suretyship is concluded by the term "suretyship" and by terms denoting guarantee. 2. For the conclusion and enforceability of a suretyship, the offer of the surety is sufficient, unless rejected by the creditor.

Suretyship for a debtor without the debtor’s knowledge is permissible, and it is permissible even despite their opposition.

For a suretyship to be concluded, it is required that the surety be legally competent to make a donation.

A suretyship is not valid unless the obligation under suretyship is valid.

A suretyship shall be void if the surety stipulates an option of recission for themselves.

1. A suretyship may be absolute, restricted by a valid condition, suspended upon a suitable condition, deferred to a future time, or temporary. 2. For a suretyship suspended upon a suitable condition, the surety may with…

Whoever stands surety for an obligation of a person of a limited capacity, where the suretyship is due to such limited capacity, and the debtor's obligation is invalidated due to said limited capacity, the surety shall b…

1. Suretyship of a commercial debt shall be deemed a civil act, even if the surety is a merchant. 2. A suretyship arising from an aval in respect of commercial instruments shall always be deemed a commercial act.

For a suretyship to be valid, it is required that the guarantee be secured by the principal, and its delivery shall be possible by the surety.

A suretyship for the maintenance of the wife and relatives shall be valid, even before it is judicially adjudicated or amicably settled.

It shall not be permissible for a seller's agent to stand surety for the purchaser's payment of the price of what they were entrusted to sell, nor for a guardian to stand surety for the price of what they sold from the m…

1. A suretyship by a person suffering from a terminal illness shall not be permissible if they are indebted by a debt exhausting their entire property. 2. A suretyship by a person suffering from a terminal illness shall …

A suretyship subject to the release of the principal shall constitute an assignment (Hawala), and an assignment subject to the non-release of the assignor shall constitute suretyship.

A suretyship may not be for an amount exceeding that due from the debtor, nor on more onerous conditions than those of the secured debt. However, it may be for an equal or lesser amount and on identical or more lenient t…