UAE Civil Transactions Law — articles 501–600

1. If a new defect occurs in the subject matter of the sale while in the purchaser's possession, they may not return it on the basis of the latent defect, but may only demand from the seller a reduction in the price, unl…

1. If the seller warrants the fitness of the subject matter of the sale for use for a specified period and a defect appears in the subject matter of the sale during that period, the purchaser shall notify the seller of t…

1. If several things are sold in a single transaction and a defect appears in some of them before delivery, the purchaser shall have the option to accept them for the agreed price or to return them all. 2. If several thi…

1.If the subject matter of the sale has a defect that requires its return, and the purchaser has, before becoming aware of the defect, encumbered it with a right in favor of a third party that does not divest them of own…

The purchaser's right to return the subject matter of the sale for a defect shall not be forfeited solely due to a change in its value.

1. The yield of a subject matter of the sale returned for a defect, which is not considered parti thereof, shall belong to the purchaser from the date of taking possession of the subject matter of the sale until the date…

The risk of a subject matter of the sale returned for a defect shall pass from the purchaser to the seller upon the seller’s consent to take it back from the purchaser, even if actual delivery has not taken place, or upo…

The warranty for a defect shall pass to the purchaser's heirs.

The claim for warranty in respect of a defect subsists even if the subject matter of the sale has perished for any reason whatsoever.

A claim for warranty in respect of a defect shall not be admissible upon the lapse of one year from the day following the delivery of the subject matter of the sale, unless the seller has undertaken to provide a longer w…

The purchaser shall pay the price upon conclusion of the contract and before taking delivery of the subject matter of the sale or demanding it, unless otherwise agreed.

1. The seller may withhold the subject matter of the sale until they receive the price due to them, even if the purchaser has offered a pledge or a guarantee. 2. If the subject matter of the sale perishes while in the se…

1. If the purchaser takes possession of the subject matter of the sale before paying the due price, in the presence of the seller and without objection on their part, this shall be deemed consent to delivery. 2. If the p…

The destruction of the subject matter of the sale by the purchaser, even without intent, shall be deemed to constitute taking possession thereof.

If the purchaser was unaware of the location of the subject matter of the sale at the time of the contract and then becomes aware thereof, they shall have the option to either rescind the sale or to affirm it and take de…

1. The purchaser shall be obliged to pay the immediate price at the location of the subject matter of the sale at the time of the contract, unless there is an agreement or custom to the contrary. 2. If the price is a def…

If the purchaser takes possession of an item on approval for purchase and it perishes or is lost while in their possession, and the price has been specified, they shall be bound to pay it. If the price has not been speci…

1. If an entitlement claim (rei vindicatio) is brought against the purchaser in respect of the subject matter of the sale based on a right predating the sale or deriving from the seller, the purchaser may withhold the pr…

If a specific date for payment of the price is set in the sale, and it is stipulated therein that if the purchaser does not pay the price on that date, there shall be no sale between them, and the purchaser does not pay …

1. If the purchaser has taken possession of the subject matter of the sale and then dies bankrupt or insolvent before paying the price, the seller may not demand the return of the subject matter of the sale, and the pric…

The purchaser shall bear the expenses of payment of the price, registration of the sale contract, and other expenses, and the seller shall bear the expenses of delivery of the subject matter of the sale and other costs, …

Salam is a sale with deferred delivery for an advance price.

1. The following conditions shall be met for a Salam sale to be valid: a. The subject matter of the sale shall be of property that can be specified by description and quantity, and that is usually available at the time o…

The purchaser may dispose of the Salam subject matter before taking possession thereof.

It shall not be valid for both the Salam capital and the subject matter of the Salam to consist of two foodstuffs or currencies; in cases other than foodstuffs, it shall be sufficient that they differ in genus and benefi…

If the delivery date for the subject matter of the Salam arrives, it shall be delivered at the agreed-upon location. If the seller and purchaser differ on the place of delivery of the Salam subject matter, preference sha…

If the seller and the purchaser disagree on the quantity of the Salam subject matter, or on the term of its delivery, and neither has evidence, the statement of the one preference shall be given to the party who alleges …

The settlement of the Salam subject matter shall be made in its own genus. By way of exception, it may be agreed that settlement be effected in a different genus, subject to the following conditions: 1. The substitute co…

1. If the Salam subject matter has a specific time of availability, and it becomes unavailable at the time it falls due before the purchaser takes possession thereof, the purchaseri shall wait until it becomes available …

1. If delivery of the Salam subject matter becomes impossible due to a temporary supervening cause at the time it falls due, the purchaser shall have the option either to wait for its availability or to rescind the contr…

1. If a purchaser, in a Salam contract, exploits the need of a farmer and buys a future crop from them at a price or on terms that are manifestly grossly unfair, the seller shall, when the time for performance falls due,…

If a person sells the property of another without their permission, the sale shall not be effective as against the owner except by their ratification.

1. If the owner ratifies the sale, the contract shall become effective with respect thereto and binding with respect to the purchaser. The contract shall likewise become effective if ownership of the subject matter of th…

Takhāruj is the sale by an heir of their share in an estate, after the death of the decedent, to one or more other heirs for a known consideration, even if the assets of the estate are not specified.

1. Takhāruj shall transfer the seller's share in the estate to the purchaser who shall replace the seller in the entitlement to their share of the estate. 2. Takhāruj shall not include everything that appears to belong t…

If the sale is effected without itemizing the components of the estate, the seller shall not warrant to the purchaser anything other than the existence of the estate and the confirmation of their hereditary share therein…

1. The purchaser shall follow the procedures required by law for the transfer of each right included in the hereditary share subject to the Takhāruj. 2. Takhāruj shall not be effective against a third party until the pur…

1. Death illness is the illness in which a person is unable to pursue their usual activities, and in which death is predominant, and which is connected with death. 2. Cases which a person is surrounded by a danger of dea…

1. A sale by a sick person to an heir or to another for the price of the like or with minor unfairness shall be effective and shall not require the ratification of the heirs. 2. A sale by a sick person to an heir or to a…

A sale by a sick person to a non-heir for less than the value of the like, even with minor unfairness, shall not be effective as against the creditors if the estate is fully encumbered with debts, and the purchaser may p…

The rescission of a sale by a sick person shall not be permitted if the purchaser has disposed of the subject matter of the sale in a manner that confers, for consideration, a right therein upon a good faith person. In t…

A person who acts as a representative for another by virtue of an agreement, a provision of law, or an order from the competent authorities may not, whether directly or under an assumed name, even by way of public auctio…

An intermediary or an expert, or any person in a similar capacity, may not buy in their name or under an assumed name, even by public auction, the properties that entrusted thereto for sale or for the valuation of their …

By way of exception to the provisions set forth in Articles (542) and (543) of this Law, the representative, intermediary, or expert may purchase for themselves if authorized by the principal or the relevant person.

1. A right is considered disputed if a lawsuit has been instituted regarding its subject matter or if a serious dispute has arisen concerning it. 2. If a disputed right is sold, the person disputing with the seller may r…

The provisions of Article (545) of this Law shall not apply in the following cases: 1. If the disputed right is part of a group of properties sold en bloc for a single price. 2. If the disputed right is held in common am…

1. Judges, members of the Public Prosecution, experts, court officials, or persons in a similar capacity, or their relatives up to the second degree, may not purchase, whether in their own names or in assumed names, all …

Barter is a contract by which each of the contracting parties undertakes to transfer to the other, by way of exchange, the ownership of property other than money.

The addition of a sum of money to one of the two exchanged items for balancing purposes shall not remove from the barter its nature, if the exchanged items have different values in the estimation of the contracting parti…

The expenses of the barter contract, delivery expenses, and any other expenses shall be borne equally by the two parties to the barter, unless there is an agreement or a custom to the contrary.

The provisions of the sale contract shall apply to the barter contract to the extent permitted by the nature of the barter, and each of the two parties to the barter shall be deemed a seller of the thing they exchanged a…

A gift is a contract whereby the donor undertakes, during their lifetime, to transfer the ownership of the gifted property to the donee without consideration.

1. If the donor stipulates a consideration from the donee, the contract shall be a commutative contract to which the provisions governing commutative contracts shall apply, according to the nature of the consideration. 2…

1. A gift is concluded by offer and acceptance and is completed by taking possession. 2. If the gifted property is immovable, its gift shall not be valid unless documented in accordance with the applicable legislation. 3…

A contract of gift shall not be effective in the following cases: 1. If the gifted property is not owned by the donor, unless ratified by the owner. 2. A gift made by a debtor whose debt has encompassed their property, u…

A gift of a debt to the debtor is valid and shall be deemed a discharge (ibraʾ). A gift of a debt to a non-debtor is valid and shall take effect if the debtor pays the debt to the donee.

A partner may validly gift their share in an undivided property to their partner or to a third party is valid, whether the gifted property is immovable or movable, and even if the gifted property is divisible.

It shall be a condition for the validity of a gift that the donor is not legally interdicted from making the gift.

Whoever mortgages a thing for a debt owed thereby and then gifts it to a person other than the mortgagee, and the mortgagee consents to the gift to another, the gift shall be valid and the debt shall remain without secur…

If the mortgaged property is gifted to a person other than the mortgagee and then the donor dies before redeeming the mortgage, the gift shall be void.

A gift shall be void if the donor's debts encompass their property before the donee takes possession of the gifted property, even if the debt arises after the gift.

1. A gift of trees with the exclusion of their fruit for one year or more, on the condition that the donee undertakes their irrigation and maintenance during that period, shall not be permissible; if such a gift occurs, …

Whoever gifts a thing to a person and then gifts it, before possession, to a second person, and the second person takes possession before the first, it shall be adjudged to the second, and the donor shall not be bound to…

A gift of a deposit to the depositary, or a gift of a thing lent for use to the borrower, shall be void if the depositary or the borrower does not accept it except after the donor's death, whether they were aware of the …

If a thing lent for use is gifted to a person other than the borrower, or a deposit is gifted to a person other than the depositary, and the donor dies before the expiry of the period of the loan for use or before the re…

1. A gift by a minor or a prodigal without consideration shall be void. 2. The guardian of an interdicted person may not make a gift of any property of their ward, unless the guardian is the father, and the gift is made …

If the leased property is gifted to someone other than the lessee and the donor dies before the expiry of the lease period, the possession of the lessee shall not, after the gift, be possession for the donee, unless the …

If one spouse gifts property to the other where necessity requires their joint possession thereof, or the wife gifts the dwelling house to the husband, the completion of the gift does not depend on the independent posses…

A promise to make a gift shall not be valid, nor shall a gift of a future property be valid.

If one of the parties to a gift dies, becomes bankrupt, or insolvent before the contract is documented or the gifted property is possessed, the gift shall be void, even if made without consideration.

A gift after the donor's death is valid if the donee sought to document it or to take possession thereof during the donor's lifetime but was unable to do so until after their death.

The provisions of a will shall apply to a gift made during a death illness.

The donor is obliged to deliver the gifted property to the donee, and the provisions governing the delivery of the sold property shall be followed in this regard.

1. If the gift is made without consideration, the donor does not guarantee the entitlement of the gifted property nor its freedom from defects, unless they intentionally conceal the cause of the entitlement or the defect…

1. If the gifted property becomes subject to entitlement after it has perished while in the possession of the donee, and the entitled party chooses to have recourse against the donee for the guarantee, the latter may cla…

The donor does not guarantee a latent defect in the gifted property, even if the donor intentionally concealed it, unless the gift is made for consideration.

The donee is obliged to perform what has been stipulated as consideration for the benefit of the donor, a third party, or the public interest.

If it is found that the gifted property is of lesser value than the stipulated consideration, the donee is not obliged to pay more than the value of the gifted property.If it is found that the gifted property is of lesse…

If the donor stipulates as consideration for the gift the payment of their debts, the donee is not obliged to pay except the debts that existed in the donor's liability at the time of the gift, unless otherwise agreed.

If the donor stipulates that the donee shall provide maintenance for them or for another for life, the donee shall be bound by such stipulation. If the donee breaches this obligation, the donor may demand the performance…

If the gifted property is encumbered with a real right (jus in rem) securing a debt owed by the donor or by another person, the donee is obliged to pay this debt, unless otherwise agreed.

1. The donor may revoke the gift before taking possession thereof without the donee's consent. 2. The donor may revoke the gift after taking possession thereof with the donee's consent. If the donee does not consent, the…

An acceptable excuse for rescinding and revoking a gift is considered to be: 1. That the donee fails to fulfill their obligation towards the donor or one of their relatives, such that it is considered ingratitude on thei…

1. Either parent may recover what they have gifted to their child. 2. The right of either parent to recover what they have gifted to their child is forfeited in the following cases: a. If the nature of the gifted propert…

An impediment to the revocation of a gift is considered to be: 1. If the gifted property has had an attached addition that causes an increase in its value, and if the impediment ceases, the right of revocation shall revi…

If the donee intentionally and unlawfully kills the donor, any of their heirs has the right to invalidate the gift.

1. The donor may recover the gifted property if they have stipulated in the contract that such recovery shall occur in the event the donee fails to fulfill certain obligations for the benefit of the donor or someone they…

1. Revocation results in the return of the gifted property to the ownership of the donor from the time the revocation is completed, without prejudice to the rules related to registration. 2. The donee shall not be requir…

1. If the donor recovers the gifted property without mutual consent or litigation, they shall be liable to the donee for the perishment of the thing, whether the perishment is by the donor's act, by an external event for…

The expenses and costs of the gift shall be borne by the donee, and the expenses and costs of the revocation shall be borne by the donor, unless otherwise agreed.

1. A loan is a contract whereby the lender undertakes to transfer to the borrower the ownership of a sum of money or any other fungible thing, on the condition that the borrower returns to the lender at the end of the lo…

The subject matter of the loan shall be fungible and consumable.

1. The lender shall be of full legal capacity, and the borrower shall be legally capable of assuming obligations. 2. The guardian, tutor, curator, or representative of an absentee may not borrow funds for the benefit of …

1. The lender shall deliver the subject matter of the contract to the borrower upon completion of the contract, unless it is agreed to deliver it at another time. 2. If the item perishes before its delivery to the borrow…

If a third party is adjudged entitled to the property received under the loan while it is still in the possession of the borrower, the latter’s obligation to return a similar item shall lapse, and they may have recourse …

1. If a latent defect appears in the property received under the loan, the borrower shall only be obliged to return its value in its defective condition. 2. If the lender intentionally concealed the defect, they shall be…

If the loan is subject to a term, the lender may not demand repayment before the expiry of the term. If no term is agreed upon, or if it is agreed that repayment shall be made when the borrower is able to do so, the cour…

1. The borrower is obliged to return the same amount, type, and description of what they have received at the end of the loan period, and no regard shall be had to any change in its value, at the time and place agreed up…

If several persons borrow funds and one of them receives the amount with the consent of the others, none of them may demand from that person more than their share of what was received.

1. The borrower is obliged to repay at the place where the loan was concluded, unless expressly or implicitly agreed otherwise. 2. If the domicile of both parties moves to another country, whether the same or different, …