UAE Civil Transactions Law — articles 401–500

1. No one of the co-creditors in a joint debt may, on their own, defer the debt without the consent of the other co-creditors. 2. However, a co-creditor in a joint debt may defer their share without the consent of the ot…

An obligation shall be indivisible in the following cases: 1. If its subject matter, by its nature, does not admit division. 2. If it appears from the purpose intended by the contracting parties that the obligation may n…

If there are multiple debtors in an indivisible obligation, each shall be bound for the entire debt, and any debtor who has performed the debt shall have the right of recourse against the others, each in proportion to th…

1. If there are multiple creditors in an indivisible obligation, or if the heirs of a creditor in such obligation are multiple, each creditor or heir may demand the performance of the entire obligation. 2. If one of the …

A creditor may assign their right to another person, unless this is precluded by a provision of law, the agreement of the contracting parties, or the nature of the obligation. The validity of the assignment shall not be …

A right may only be assigned to the extent that such right is capable of attachment.

An assignment of right shall not be enforceable against the debtor or a third party unless it is accepted by the debtor or notified thereto. However, its enforceability against a third party by the debtor's acceptance re…

The assignee creditor may, before the notification of the assignment of the right or its acceptance, take such measures as are necessary to preserve the right that has been transferred thereto.

An assignment of a right includes its securities, such as suretyship, privilege, and pledge, and is also considered to include any instalments that have fallen due.

The assignor shall deliver to the assignee the instrument of the assigned right and all data or means necessary to enable them to exercise their right.

1. If the assignment of right is for consideration, the assignor shall warrant only the existence of the assigned right at the time of the assignment, unless otherwise agreed. 2. If the assignment of right is without con…

1. The assignor shall not warrant the solvency of the debtor, unless there is a specific agreement for this warranty. 2. If the assignor warrants the solvency of the debtor, this warranty shall extend only to the solvenc…

If the assignee has recourse against the assignor for the warranty under Articles (411) and (412), the assignor is only liable to return what they received along with expenses, even if otherwise agreed. However, the assi…

The assignor shall be liable to compensate the assignee for the damage sustained due to their personal acts, even if the assignment was gratuitous, and any condition to the contrary shall be void.

The debtor may plead, as against the assignee, the defences that they could have raised against the assignor at the time the assignment of right became effective against them, and they may also plead defences arising fro…

If multiple assignments are made for the same right, the assignment that first becomes effective against third parties shall prevail.

If an attachment is levied on the assignee before the assignment of the right becomes effective against third parties, the assignment shall, as against the attaching creditor, be deemed equivalent to a further attachment…

1. A debtor may transfer their obligation to another person, unless this is precluded by a provision of law, the agreement of the contracting parties, or the nature of the obligation. 2. An assignment of debt shall not b…

1. If the creditor accepts the assignment, the liability of the original debtor shall be discharged as against the creditor, and the debt shall be transferred to the liability of the assignee. 2. If the creditor expressl…

1. The original debtor shall have the right to require the assignee to perform payment to the creditor, unless otherwise agreed. 2. The assignee may refrain from performing the debt to the creditor if the original debtor…

1. The assigned debt shall retain its securities, notwithstanding any change in the person of the debtor. 2. A guarantor, whether real or personal, does not remain bound to the creditor unless the guarantor has consented…

The original debtor warrants the solvency of the assignee at the time of the creditor's approval of the assignment, unless otherwise agreed.

The assignee may plead against the creditor the defences that the original debtor could have raised, and may also plead defences arising from the assignment contract.

1. The sale of a mortgaged property by a registered mortgage shall not entail the transfer of the debt secured by the mortgage to the liability of the purchaser, unless there is an agreement to that effect. 2. If the sel…

An obligation shall be extinguished if the creditor voluntarily releases their debtor. The release shall be effected when it comes to the knowledge of the debtor, and shall be revoked by the debtor's rejection thereof. I…

A release shall not be valid except for an existing debt and shall not be permissible for a future debt.

1. The substantive provisions that apply to every donation shall apply to a release. 2. No special form shall be required for a release, even if it relates to an obligation arising from a disposition for which a form is …

An obligation shall be extinguished if the debtor proves that performance has become impossible for them due to a foreign cause beyond their control.

A right shall not be extinguished by the lapse of time, but a claim thereon shall not be admissible against a denier upon the lapse of fifteen (15) years without an accepted excuse, except for the cases where the law spe…

1. A claim for any periodic recurring right shall not be admissible against a denier upon the lapse of five (5) years without an accepted excuse. 2. A claim for the due quarter against a holder in bad faith shall not be …

A claim shall not be admissible upon denial after the lapse of three (3) years without an acceptable excuse for the following rights: 1. The rights of physicians, pharmacists, lawyers, engineers, experts, professors, tea…

A claim shall not be admissible upon denial after the lapse of two (2) years without an acceptable excuse for the following rights: 1. The rights of merchants and manufacturers for items supplied to persons who do not tr…

1. The claim shall not be admissible in the cases mentioned in Article (432) of this Law, even if the creditors continue to perform other work for the debtor. 2. If an acknowledgment or instrument is made out for any of …

The period prescribed for the barring of a claim by the lapse of time shall commence from the day on which the right becomes due for performance, from the time of the fulfilment of the condition if it is subject to a con…

A claim shall not be admissible if it is left unpursued by a predecessor then by a successor after them and the total of the two periods reaches the period prescribed for the non-hearing thereof.

The period that bars a claim shall be calculated in days, and the first day shall not be counted. The period shall be completed upon the expiry of the last day thereof, unless it is an official holiday, in which case it …

1. The lapse of time barring a claim shall be suspended whenever there is an acceptable excuse that makes it impossible to claim the right, and the period during which such impediment exists shall not be counted in the p…

If some of the heirs do not file a claim related to the right of their decedent within the period prescribed for it to be admissible, and the remaining heirs have an acceptable excuse, the claim of the latter shall be he…

An express or implied acknowledgment by the debtor of the right shall interrupt the lapse of time prescribed for the barring of a claim.

The period prescribed for the barring of a claim shall be interrupted by a judicial claim or by any judicial proceeding taken by the creditor to assert their right.

1. If the period prescribed for the barring of a claim is interrupted, a new period, equal to the original period, shall commence. 2. If a judgment is rendered for the debt and the judgment has acquired the force of res …

The barring of a claim in respect of a right by the lapse of time entails the barring of a claim relating to its accessories, even if the period prescribed for the barring of a claim for these accessories has not been co…

1. A waiver of the defense of the barring of a claim by the lapse of time shall not be valid before the right to invoke such defense is established, nor may it be agreed that a claim shall not be admissible after a perio…

1. The court may not rule on its own motion on the non-admissibility of a claim; such ruling shall be made only upon a request by the debtor or by an interested party among the litigants. 2. The defence may be raised at …

A sale is a contract whereby the seller undertakes to transfer to the purchaser ownership of the subject matter of the sale or any other financial right, in consideration of a monetary price.

1. The purchaser shall have sufficient knowledge of the subject matter of the sale; failing which, they shall have the right to seek the annulment of the contract. 2. Knowledge shall be deemed sufficient if the purchaser…

1. If the sale is by "sample or model", the subject matter of the sale shall conform thereto. 2. If it appears that the subject matter of the sale does not conform to the sample or model, the purchaser shall have the opt…

1. If the contracting parties disagree as to whether the subject matter of the sale conforms to the sample or model, and both the sample or model and the subject matter of the sale exist, the opinion of the experts shall…

1. In a sale subject to trial, the purchaser may accept or reject the subject matter of the sale, and the seller shall enable the purchaser to conduct the trial. If the purchaser rejects the subject matter of the sale, t…

In a sale on approval, the rules of sale shall apply as from the date of the sale.

If the purchaser loses their legal capacity before they approve the sale, the guardian, tutor, curator, as the case may be, shall choose what is in their best interest, in compliance with the conditions and provisions st…

If the purchaser dies before choosing the subject matter of the sale, and a creditor whose debt exhausted all the purchaser’s property, the right of trial shall pass to the creditor. Otherwise, this right shall pass to t…

The purchaser may not use the subject matter of the sale during the trial period except to the extent required for the purpose of the trial according to custom. If they exceed such use in a manner not intended for trial,…

The fruits of the subject matter of the sale during the trial period shall belong to the seller, and the expenses thereof shall be borne thereby, unless the fruits form part of the subject matter of the sale in which cas…

The provisions of a sale subject to trial shall apply to a sale subject to tasting, provided that the option of tasting is not inheritable, and the sale becomes final and binding.

The price is what the contracting parties have agreed upon in exchange for the subject matter of the sale, whether it exceeds or is less than its value. The value is the objective worth of the thing, assessed without inc…

1. The determination of the price may be limited to stating the criteria according to which it shall be determined at a later stage. 2. If it is agreed that the price shall be the market price, it shall, in case of doubt…

If the contracting parties do not specify a price for the subject matter of the sale, this shall not result in the nullity of the sale if it is apparent from the circumstances that the contracting parties intended to ado…

If the contracting parties declare a price different from what they actually agreed upon, the real price shall prevail.

If the price is determined on the basis of weight, the net weight shall be taken into consideration, unless the two parties agree or custom dictates otherwise. Custom shall determine the tolerable amount of shortage in t…

1. A sale may be conducted by a Murabaha (cost-plus sale), Tawliya (sale at cost), or Wadi'a (sale at a loss). 2. Murabaha is a sale at the original purchase price paid by the seller, with a specified added profit. Tawli…

1. If an immovable property owned by a person lacking or of limited legal capacity is sold, and the sale involves gross lesion, the seller may request completion of the price to the value of the like. 2. The assessment o…

1. A claim for completion of the price due to gross lesion shall not be admissible after the lapse of three (3) years from the time of attaining legal capacity or from the day of the death of the owner of the sold immova…

1. An increase in the price by the purchaser after the contract shall attach to the original contract if accepted by the seller, and the agreed price together with the increase shall constitute the consideration for the …

1. The price shall be due for immediate payment, unless the parties agree that it shall be deferred or paid in instalments over a specified term. 2. If the price is deferred or to be paid in instalments, the term shall c…

1. The ownership of the subject matter of the sale shall be transferred to the purchaser as soon as the sale is concluded, unless the law or the agreement provides otherwise. 2. Each of the parties to the sale shall proc…

If the sale is a lump-sum sale (Juzāf), ownership shall be transferred to the purchaser in the same manner as it is transferred in respect of a specifically designated thing. A sale shall be deemed lump sum even if the d…

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 p…

1. The seller shall deliver the subject matter of the sale to the purchaser free from any third-party right, unless the law or the agreement provides otherwise. 2. If the nature of the subject matter of the sale requires…

A contract relating to a building or a tree includes the land on which the building stands and the land into which the tree's roots extend. A contract relating to land includes the buildings and trees thereon, unless a c…

The sale of land does not include the crops growing thereon, unless a condition or custom provides otherwise.

The sale of a tree, whether independently or as appurtenant to the land, shall include the fruit born thereon if it has not been pollinated, or if it has not been set, in whole or for the most part. If it has been pollin…

A contract for crops that are harvested by cutting does not include subsequent growth, unless a condition or custom provides otherwise.

If the seller delivers the subject matter of the sale to the purchaser in a proper manner, they shall no longer be liable for any damage or loss occurring to the subject matter of the sale thereafter.

If the quantity of the subject matter of the sale is specified in the contract and a shortage or surplus appears therein, and there is no agreement or custom in this regard, the following rules shall be followed: 1. If t…

A claim for rescission of the contract, or reduction or completion of the price, shall not be admissible if one year has elapsed from the date of delivery of the subject matter of the sale.

Delivery is effected by placing the subject matter of the sale at the disposal of the purchaser in such a way as to enable them to take possession of it and benefit from it without hindrance, even if actual possession do…

1. If the contract does not specify a time for the delivery of the subject matter of the sale, the seller is obligated to deliver it immediately upon the conclusion of the contract. 2. If the two parties to the sale agre…

1. The sale requires the delivery of the subject matter of the sale at the place where it is located at the time of the contract, unless there is an agreement between the parties or a custom to the contrary. 2. If the su…

If the subject matter of the sale is in the possession of the purchaser before the sale, under any capacity or for any reason, such possession shall be deemed a delivery, unless otherwise agreed.

Delivery shall be deemed to have taken place in the following cases: 1. If the seller retains the subject matter of the sale in their possession at the request of the purchaser. 2. If the seller notifies the purchaser to…

1. If the subject matter of the sale perishes in the purchaser's possession after delivery, the purchaser shall be obliged to pay the agreed price to the seller. 2. If the subject matter of the sale perishes before deliv…

1. The seller warrants that the subject matter of the sale is free from any third-party right that may be asserted against the purchaser, if the cause of such entitlement claim predates the contract of sale. 2. The selle…

1. Any entitlement claim (rei vindicatio) concerning the subject matter of the sale brought before its delivery shall be directed against both the seller and the purchaser. 2. If an entitlement claim concerning all or pa…

The purchaser's right to the warranty shall be established even if they, acting in good faith, acknowledge the third party's right or conclude a settlement with them in respect thereof without awaiting a judicial ruling …

1. If the purchaser settles with the claimant of entitlement regarding the subject matter of the sale before a judgment is rendered in their favor, and the seller denies the claimant's right, the purchaser shall be entit…

If the whole of the subject matter of the sale is subject to entitlement and the entitled party does not authorize the sale, the contract shall be rescinded, and the purchaser may claim the following from the seller: 1. …

1. If part of the subject matter of the sale is subject to entitlement before the purchaser has taken possession of the whole thereof, the purchaser may return what they have possessed and recover the price, or accept th…

1. The contracting parties may agree to increase the warranty against entitlement. 2. Any condition that excludes or reduces the warranty shall be void. 3. The purchaser's knowledge that the subject matter of the sale is…

1. If the entitlement is established on the basis of the purchaser's admission or their refusal to take an oath, they may not have recourse against the seller. 2. The purchaser may have recourse against the seller under …

1. If entitlement is claimed after the subject matter of the sale has perished while in the purchaser's possession, the purchaser shall be liable to the entitled party for its value as at the date of sale, and shall have…

The entitled party may claim from the purchaser the benefit derived from the fruits or yield of the subject matter of the sale, after deducting the production expenses required, and the purchaser shall have recourse agai…

1. A sale is deemed to be concluded on the basis that the subject matter of the sale is free from defects. 2. The general rules governing the option for defect shall apply to the contract of sale, with due regard to the …

1. The defect giving rise to the purchaser's option for defect is the latent defect. 2. A defect is latent if it is old and existed in the subject matter of the sale before the sale, or arose thereafter while in the sell…

If a latent defect appears in the subject matter of the sale, the purchaser shall have the option to either return it or retain it and demand from the seller a reduction of the price proportionate to the defect, and the …

The seller shall be liable under the warranty if, at the time of delivery, the subject matter of the sale lacks the qualities that the seller guaranteed to the purchaser to exist therein, or if the subject matter of the …

The seller shall not be liable for a defect in the following cases: 1. If the seller disclosed the defect to the purchaser at the time of sale. 2. If the defect is one that is customarily tolerated. 3. If the purchaser a…

The seller shall not be liable for defects known to the purchaser at the time of the sale, or which the purchaser could have discovered by themselves had they inspected the subject matter of the sale with the care of an …

If the purchaser disposes of the subject matter of the sale as an owner after becoming aware of the latent defect, their option for defect shall be forfeited.

If the subject matter of the sale perishes due to a latent defect while in the purchaser's possession or is consumed before they become aware of the defect, they may recover from the seller the reduction in price caused …