UAE Civil Transactions Law — articles 201–300

The option shall lapse upon the death of its holder during its period, and the contract shall become binding with respect to their heirs. The other party shall remain entitled to their option, if the option is granted th…

An option of inspection shall be established in contracts that admit of rescission for the person in whose favor the disposition is made, even if not stipulated, where the subject matter of the contract has not been seen…

The option of inspection shall remain in force until the inspection is made within the agreed-upon period or until a cause of lapse occurs.

The option of inspection shall not prevent the effectiveness of the contract; rather, it shall prevent its binding force with respect to the party for whom the option is stipulated.

The option of inspection shall not lapse by waiver; however, it shall lapse upon the inspection of the subject matter of the contract and its acceptance, whether expressly or implicitly. It shall also lapse upon the deat…

Rescission by the option of inspection shall be effected by any act or statement indicating it, expressly or implicitly, provided that the other contracting party is aware thereof.

It may be agreed that the subject matter of the contract shall be one of two or one of three things, and that the option of selection from among them shall vest in one of the contracting parties, provided that the consid…

1. If the contracting parties do not specify a period for the option, the other party may request the court to determine a period for the option. 2. If the period specified for one of them lapses without them making a ch…

The contract shall be non-binding on the party who has the right of option until this right is exercised. If the choice is made expressly or implicitly, the contract shall become effective and binding in respect of what …

The selection of the option shall be preferable to the time at which the contract was concluded.

1. If the option of selection is vested in the purchaser: a. If one of the things perishes while in the seller's possession, the purchaser shall have the option either to take the other thing at its price or to leave it.…

If a person vested with the option of selection dies during the option period, their right shall pass to their heirs.

The right to rescind a contract due to the option for defect is established in contracts that are susceptible to rescission, even if this option is not stipulated in the contract.

For a defect to give rise to an option, it shall be latent, pre-existing, and have a material effect on the value of the subject matter of the contract, and the purchaser shall be unaware thereof, and the seller shall no…

1. If the conditions for a defect as set out in Article (214) of this Law are met, the contract is not binding on the party with the option before taking possession and is subject to rescission thereafter. 2. The contrac…

Rescission of a contract for a defect shall entail the restitution of its object to its owner and the recovery of what has been paid.

The holder of the option for a defect may keep the subject matter of the contract and claim compensation for the diminution in price.

1. The option for a defect shall lapse by waiver, by acceptance of the defect after becoming aware thereof, by disposing of the subject matter of the contract even before becoming aware thereof, by its perishing or dimin…

1. The legal effect of a valid contract is established in its subject matter and its consideration upon its conclusion, without being contingent on taking possession or any other matter, unless the law or the agreement p…

1. A commutative contract over tangible things, if it meets the conditions for its validity, shall entail the establishment of ownership for each of the contracting parties in the consideration for their property, and th…

1. The contract shall be performed in accordance with its contents and in a manner consistent with the requirements of good faith. 2. The contract is not limited to obligating the contracting party to what is stated ther…

In bilateral contracts, if the reciprocal obligations are due for performance, each of the contracting parties may refrain from performing their obligation if the other contracting party fails to perform what they have u…

If a contract is concluded by way of adhesion and contains unfair conditions, the court may modify these conditions or exempt the adhering party from them in accordance with the requirements of justice, and any agreement…

If exceptional, general circumstances arise that could not have been foreseen at the time of contracting, and as a result of their occurrence, the performance of the contractual obligation becomes onerous for the debtor,…

Without prejudice to the provisions relating to inheritance, the effect of the contract shall extend to the contracting parties and the universal successor, unless it is apparent from the contract, the nature of the tran…

If the contract creates personal obligations and rights related to a thing that is subsequently transferred to a particular successor, these obligations and rights shall be transferred to this successor at the time the t…

A contract shall not create an obligation upon a third party, but it may grant them a right.

1. If a person undertakes that a third party shall be bound by a certain matter, that third party is not bound thereby. 2. If the third party accepts such undertaking, their acceptance produces no effect except from the …

1. A person may contract in their own name for obligations stipulated for the benefit of a third party, if they have a personal interest, whether material or moral, in the performance of these obligations. 2. A stipulati…

1. The stipulator, but not their creditors or heirs, may revoke the stipulation before the beneficiary declares to the promisor or to the stipulator their wish to benefit from it, unless this is contrary to what the cont…

In a stipulation for the benefit of a third party, the beneficiary may be a future person, or a person who is not determined at the time of the contract, if it is possible to determine them at the time of performance of …

If a contract is valid and binding, neither of the contracting parties may revoke the contract, nor modify or rescind it, except by mutual consent, litigation, or by virtue of a provision of law.

1. The contracting parties may mutually agree to rescind the contract after its conclusion. 2. Mutual rescission (Iqala) shall be subject to the general conditions of a contract. 3. Mutual rescission may be effected in r…

1. In bilateral contracts, if one of the contracting parties fails to perform their obligation upon its due date, the other contracting party may, after giving notice to the debtor, request the court to order the perform…

It may be agreed that the contract shall be considered automatically rescinded without the need for a judicial judgment upon failure to perform the obligations arising therefrom. This agreement does not exempt the partie…

1. In bilateral contracts, if a force majeure arises rendering performance of an obligation impossible, the corresponding obligations are extinguished, and the contract is rescinded automatically. 2. If the obligation be…

If the contract is rescinded or terminated, the contracting parties shall be restored to the state they were in before the contract. If this is impossible, compensation shall be awarded.

If a contract is dissolved due to nullity, rescission, or for any other reason, and each contracting party shall return what they have received from the other, each of them may withhold what they have received as long as…

A disposition may be made by the unilateral will of the disposer without being contingent on the acceptance of the person to whom the disposition is made, unless it involves binding a third party thereto in accordance wi…

The provisions governing contracts shall apply to a unilateral act, except for those relating to the necessity of the existence of two corresponding wills for the creation of the contract, unless the law provides otherwi…

If a unilateral act fulfils its essential element and conditions, the disposer may not revoke it, unless the law provides otherwise.

Unless the law provides otherwise, if the unilateral act is: 1. A transfer of ownership, its effect shall not be established for the person to whom the disposition is made except by their acceptance. 2. A waiver that has…

A promise is what a person imposes on themselves for another to be performed in the future, not by way of an obligation in property. It may concern a contract or an act, and the promisor is bound by their promise unless …

1. Whoever makes a promise to the public of a prize to be given for a specific act and sets a time limit therefor, shall be bound to give the prize to whoever performs this act in accordance with the announced conditions…

1. Subject to the provisions on liability contained in special legislations, the provisions of this Chapter shall apply to the liability arising from a harmful act committed by a natural or legal person. 2. Civil liabili…

Every act causing harm to another shall obligate its perpetrator to compensate for the damage, even if the perpetrator lacks discernment.

1. Harm may be caused directly or by causation. 2. If the harm occurs directly, a guarantee is due without any condition. If it occurs by causation, no guarantee is due unless the perpetrator was a transgressor or acted …

A person whose property has been destroyed by someone is not entitled to destroy the property of that person; otherwise, each of them shall be liable for what they have destroyed.

If a person proves that the harm arose from an external cause beyond their control, such as an act of God, a sudden accident, force majeure, the act of a third party, or the act of the injured party, they shall not be li…

A person who causes harm while acting in lawful self-defence of their person, honour, or property, or of the person, honor, or property of another, shall not be liable for such harm, provided that they do not exceed the …

1. An act shall be attributed to its perpetrator, not to the person who ordered it, unless the perpetrator was compelled. In factual acts, only irresistible coercion is legally relevant. 2. A public official or a person …

Whoever causes harm to another to avert a greater imminent harm threatening them or another shall not be liable for compensation except to the extent deemed appropriate by the court, taking into account the requirements …

1. If there are multiple persons responsible for the harm, each shall be liable in proportion to their share therein, and the court may rule that they be liable equally or jointly and severally. 2. The court may reduce t…

1. Liability shall include moral harm. An infringement on another's freedom, honor, reputation, social standing, or financial status shall constitute moral harm. 2. Compensation may be awarded to spouses and relatives up…

In all cases, compensation shall be assessed based on the extent of the loss suffered by the injured party and the loss of their profit, provided that this is a natural consequence of the harmful act.

1. Compensation shall be assessed in cash. 2. The court may, depending on the circumstances and upon the request of the injured party, where damage has occurred, order the restoration of the status quo ante, or order the…

Any condition providing for exemption or mitigation of liability arising from a harmful act shall be void. However, it shall be permissible to stipulate an aggravation of this liability, unless the law provides otherwise…

1. A claim for compensation arising from a harmful act shall not be admissible after the lapse of three (3) years from the day the injured party became aware of the occurrence of the damage and of the person responsible …

1. Compensation shall be required for bodily harm inflicted upon the person. 2. In cases where blood money (Diyah) or Arsh is due, the court may, upon the request of the injured party, award compensation if the death or …

1. Without prejudice to the provision of Article (265) of this Law, if a person, even if they lack discernment, destroys or damages the property of another, they shall be liable for its equivalent if it is a fungible and…

1. Liability attaches to the possession of property taken until it is returned. 2. Whoever usurps property belonging to another shall be obligated to return it to them in the condition it was in at the time of usurpation…

1. If the usurped property changes naturally without intervention, the party from whom it was usurped has the option between recovering the usurped property or its substitute. 2. If the usurped property undergoes a trans…

Anything equivalent to usurpation is governed by the same rules as usurpation.

1. Whoever holds property held in trust (Amanah) thereafter commits usurpation thereof, disposes of it by way of trespass, or withholds it from its owner without right, finds it while its owner is unknown, or dies while …

1. Anyone who is legally or contractually obligated to supervise a person in need of supervision because they are a minor or due to their mental or physical condition shall be liable for any damage caused by that person …

1. A principal shall be liable for the harm resulting from a harmful act committed by their subordinate, when it is committed by them in the performance of their duty or because of it. 2. The relationship of subordinatio…

The person liable for the act of another, whether a supervisor or a principal, has the right of recourse against the person who caused the harm to the extent that this other person is liable for compensation.

The guardian of a thing is any person who, whether personally or through another, exercises actual control over it. The owner of the thing shall be presumed to be its guardian, unless evidence is provided that guardiansh…

The guardian of an animal, even if not its owner, is liable for any harm caused by the animal, unless the guardian proves that the incident occurred due to an external cause for which they are not responsible.

The guardian of a building, even if not its owner, is liable for the harm caused by the collapse of the building, even if it is a partial collapse, unless it is proven that the harm was due to an external cause for which…

Whoever has under their control things that require special care to prevent their harm, or mechanical machinery, shall be liable for the harm caused by these things or machinery, except for what cannot be prevented, with…

Anyone threatened with harm arising from a building, animal, mechanical machinery, or things whose guardianship requires special care may require their guardian or owner take the necessary measures to avert the danger. I…

The use of public utilities is a right subject to the safety of others. Whoever uses this right and causes damage that could have been averted, shall be liable.

1. No one may take the property of another without a lawful ground. If they take it, they shall return it and shall be liable for its benefitsi and accretions. 2. Whoever acquires property from another without an acquisi…

1. Whoever receives, by way of performance, what is undue to them shall be bound to make restitution thereof if it remains in existence, or to restore its equivalent or its value if it is no longer in existence. 2. No re…

Restitution of the undue shall be permitted if performance has been made in fulfilment of an obligation whose cause has not been realized, or of an obligation whose cause has ceased after having been realized, or if the …

No restitution of the undue may be claimed from the creditor if the performance was made by a person other than the debtor and it resulted in the creditor, acting in good faith, having divested themself of the instrument…

1. Where the recipient of an undue is acting in good faith, they shall only be bound to return what they received. If they refuse to make restitution, they shall be bound to return what they have received, together with …

If the person who received what is undue lacks contractual capacity, they shall be bound only to the extent of the enrichment thereby obtained.

Negotiorum gestio (Fadalah) is when a person voluntarily undertakes the performance of a beneficial act for another, without being ordered thereby, authorized by the court, required by necessity, or established by custom…

Negotiorum gestio (Fadalah) is established even if the negotiorum gestor, while managing their own affair, also manages the affair of another, due to a connection between the two affairs that makes it impossible to carry…

The rules governing agency shall apply if the principal ratifies the acts performed by the negotiorum gestor.

The negotiorum gestor shall continue the work they have begun until the principal is able undertake it personally. The negotiorum gestor shall also notify the principal of their intervention as soon as they are able to d…

1. The negotiorum gestor shall exercise, in the performance of the work, the care of an ordinary person and shall be liable for their fault. However, the court may reduce compensation arising from such fault if there is …

1. The principal shall be bound to perform the obligations undertaken by the negotiorum gestor on their behalf, to reimburse them for the obligations they have assumed, to refund them for the necessary and beneficial exp…

1. If the negotiorum gestor dies, their heirs shall be bound by the same obligations binding the heirs of an agent upon termination of agency by the agent's death. 2. If the principal dies, the negotiorum gestor remains …

Whoever pays the debt of another at that person’s order shall have the right of recourse against the person who gave the order for what they have paid on their behalf, and shall legally substituted for the original credi…

Whoever pays the debt of another without that person’s order shall have no right of recourse against the debtor for what they have paid, unless authorized by the court, required by necessity, or it is customary that they…

If a mortgagor pays the debt of another in order to release their property that was mortgaged as security for this debt, they shall have the right of recourse against the debtor for what they have paid.

1. No claim arising from a beneficial act shall be admissible after the lapse of three (3) years from the day on which the creditor became aware of their right of recourse. 2. In all cases, no claim shall be admissible a…

Obligations that arise directly from the law shall be governed by the legal provisions that created them.

The debtor shall perform their obligation upon its maturity once its legal conditions are met. If the debtor refuses, performance shall be compelled against them.

1. Performance shall be voluntary if effected by payment or by its equivalent. 2. Performance shall be compulsory if effected in kind or by way of compensation.

If a right lacks legal protection for any reason, it shall not be subject to compulsory enforcement and shall become a natural obligation incumbent upon the debtor. If the debtor voluntarily performs it, such performance…

1. Subject to the provisions of Article (332) of this Law, performance may validly be effected by the debtor, their representative, or a third party. 2. The creditor may refuse performance by a third party if the debtor …

For performance to be valid, the person effecting it shall be the owner of what is given in performance and shall have the legal capacity to dispose thereof. If the performer effecting the performance of the obligation l…

Performance made to some creditors shall not be effective as against the other creditors if the debtor has been interdicted for debt and performance is made out of the interdicted property, or if the debtor is suffering …

Performance shall be made to the creditor or their representative. A person who presents to the debtor a receipt issued by the creditor shall be deemed to have capacity to receive the debt, unless it has been agreed that…

If the creditor lacks or has limited legal capacity, the debtor's liability shall be discharged only by performance made to the creditor’s guardian. If payment is nevertheless made to the creditor and the thing given in …

If the creditor, without justification, refuses to accept a duly offered performance, or declares that they will not accept performance, the debtor shall put the creditor in default, and shall grant them a reasonable per…