UAE Civil Transactions Law — articles 801–900

The borrower is obligated to use the loaned thing in the specified manner and to the extent specified, in accordance with the contract, accepted by the nature of the loaned thing, or determined by custom. The borrower sh…

The borrower may not, without the lender's permission, dispose of the loaned thing in a manner that grants a right to another in its usufruct or substance by transferring it, pledging it, leasing it, or any other disposi…

If the use of the loaned thing requires expenditure by the borrower, they are not entitled to recover it and are obliged to bear the necessary expenditure for the customary maintenance of the loaned thing. They may remov…

1. The borrower shall exercise in preserving the loaned thing the care they exercise in preserving their own property, without falling below the care of an ordinary person. 2. The borrower shall be liable for the perishi…

If the borrower exceeds the customary manner in using the loaned thing or uses it contrary thereto and it is destroyed or damaged, the borrower shall be liable to the lender for the damage sustained by the loaned thing.

The borrower may deposit the loaned thing with a trustworthy person capable of preserving it, and shall not be liable if it is destroyed while in that person’s possession for a reason not attributable thereto.

The contract of loan for use shall terminate in the following cases: 1. The death of the lender or the borrower; the loan shall not pass to the heirs, unless agreed otherwise. 2. Upon expiration of the agreed term or upo…

1. The lender may request the termination of the loan for use in the following cases: a. If an urgent and unforeseen need for the thing arises. b. If the borrower misuses the loaned thing or fails to exercise the due car…

If the borrower dies without disclosing the loan for use of the loaned thing, and it is not found in their estate, its value at the time of death shall constitute a debt on the estate.

1. If the loan for use is rescinded or terminated, the borrower shall return the loaned thing to its owner and refrain from using it, unless the law permits its retention. 2. If the loan for use is terminated by the deat…

The loaned thing shall be returned at the place it was loaned, unless there is an agreement or custom to the contrary.

A contracting agreement (Muqawala) is a contract whereby one of the contracting parties undertakes to manufacture a thing or to perform a work for a consideration to be paid by the other contracting party.

The Muqawala contract shall specify its subject matter, indicating its nature and quantity, the method of performance, the period of completion, and the consideration payable in return therefor.

1. It may be agreed in the Muqawala contract that the contractor is obligated to provide the work only, and that the employer shall provide the materials to be used by the contractor in performing their work. 2. It may a…

If the contractor undertakes to provide all or part of the materials for the work, such materials shall be provided according to the terms of the contract, if any, and otherwise according to the prevailing custom. The co…

1. If the employer provides the materials for the work, the contractor shall preserve them with the care of an ordinary person, observe the technical standards in performing the work, and return to the employer what rema…

The contractor shall provide all additional machinery and tools necessary for the completion of the work at their own expense, unless the contract or prevailing custom provides otherwise.

1. The contractor shall complete the work according to the terms of the contract and within the agreed period. If no terms are stipulated or no period is agreed, the contractor shall complete it according to the recogniz…

The contractor shall be liable for any damage or loss resulting from their act or workmanship, whether arising from their transgression or negligence, or otherwise. Liability shall be excluded if such damage or loss resu…

1. If the contractor's work has produced an effect on the thing, they may retain it until the due remuneration is paid. If the thing perishes while in their possession before payment of the remuneration, they shall bear …

1. If the subject matter of a Muqawala contract is the construction of buildings or other fixed installations, for which the engineer has prepared the design to be executed by the contractor under the engineer’s supervis…

1. If the engineer's work is limited to preparing the design for the building or installation, or a part thereof, they shall be liable for defects that are attributable to the design or construction they have prepared, b…

Any clause intended to exempt or limit the liability of the engineer or the contractor shall be void.

A claim for warranty shall not be admissible after the lapse of three (3) years from the occurrence of the collapse or the discovery of the defect.

The employer shall be obliged to take delivery of the completed work once the contractor completes it and places it at their disposal. If the employer refrains from doing so without a legitimate cause despite being serve…

The employer shall be obliged to pay the remuneration upon taking delivery of the work, unless otherwise agreed.

If the work consists of several parts or the remuneration is determined on a unit basis, the employer shall be obliged to pay the contractor a portion of the remuneration in proportion to the work completed after its ins…

1. If the contract is concluded pursuant to a bill of quantities (BOQ) calculated on a unit-price basis, and it becomes apparent during the course of the work that, in order to execute the agreed design, it is necessary …

1. If a Muqawala contract is concluded based on an agreed design in exchange for a lump-sum remuneration, the contractor may not claim any increase in the remuneration, even if the prices of the materials used in the wor…

If the remuneration for the work is not specified in the contract, the contractor shall be entitled to the remuneration of the like, together with the value of the materials they have supplied as required by the work.

1. The engineer shall be entitled to a separate consideration for preparing the design and preparing the bill of quantities, and another for managing the work and supervising its execution, unless otherwise agreed. 2. If…

A contractor may subcontract the execution of the work, in whole or in part, to a subcontractor, unless prohibited by a condition in the contract or unless the nature of the work requires that they perform it in person. …

A subcontractor may not claim from the employer any amount due to the original contractor unless the latter has referred the subcontractor to the employer.

The Muqawala contract shall be extinguished upon the completion of the agreed work or upon its rescission by mutual consent or by a court order.

If an excuse arises that prevents the execution of the contract or the completion thereof, either of the contracting parties may request its rescission or termination, as the case may be.

1. The employer may be released from the contract and suspend its execution at any time before its completion, provided they compensate the contractor for all expenses incurred, the work completed, and the profit they wo…

1. If the thing perishes due to force majeure before its delivery to the employer, the contractor may not claim either the consideration for their work or the reimbursement of their expenses, and the loss of the material…

1. A Muqawala contract shall terminate upon the death of the contractor if it has been agreed that they shall personally perform the work, or if their personal qualifications were taken into consideration in the contract…

1. If the contract is extinguished by the death of the contractor, the employer shall be obliged to pay to the estate the value of the work completed and the expenses incurred for its execution, to the extent of the bene…

In the absence of a specific provision in labour legislation, the provisions contained in this Chapter shall apply to the employment contract.

The employment contract is a contract whereby one of the contracting parties undertakes to perform work for the benefit of the other contracting party under their management or supervision in return for a wage undertaken…

1. An employment contract may be concluded for the performance of a specific work or for a fixed term, and it may also be for an indefinite term. 2. If the employment contract is for the lifetime of the employee or the e…

1. The performance of work is presumed to be for a wage if it is not customary to perform such work gratuitously, or if the work falls within the profession of the person who performed it. 2. If no agreement is made on t…

1. The employee's wage is what they receive by virtue of the contract in money or in kind, in any form whatsoever. 2. If the wage is not specified in the contract, the employee shall be entitled to the wage of the like a…

The employee's wage shall include commissions, percentages, grants, in-kind benefits, and allowances granted to the employee, as well as payment for services in work where it is customary to grant them and where the empl…

1. Gratuities shall not be deemed part of the wage except in an industry or trade where it is customary to pay them; provided that it is governed by rules that allow for its regulation. 2. A gratuity shall be deemed part…

If the work involves teaching something the learning of which involves assistance rendered by the learner to the teacher, and the contract does not specify which party is entitled to a wage from the other, the prevailing…

The employee shall be obliged to: 1. Perform the work personally and exercise the care of an ordinary person. 2. Observe in their conduct the requirements of decency and public morals, and the relevant professional rules…

An employee may not engage, during working hours, in any other activity, nor may they work for another employer during the term of the contract. Otherwise, the employer may rescind the contract or reduce the wage in prop…

The employee shall be liable for any deficiency, damage, or loss of the employer's property caused by their negligence or fault.

1. If the work assigned to the employee allows them to know the employer's customers or to learn the secrets of their business, it may be agreed that the employee shall not compete with the employer or engage in any comp…

If a penalty clause is agreed upon in case of breach of the non-competition clause, and this clause is exaggerated to the extent that it becomes a means of compelling the employee to remain with the employer for a period…

1. If the employee succeeds in making a new invention while performing their work, the employer shall have no right to that invention, even if the employee has developed it on connection with the work they performed in t…

The employer shall pay the employee their wage at the time and place specified in the contract or determined by custom, when they have performed their work or made themselves available and devoted themselves thereto, eve…

The employer shall be obliged to: 1. Provide all means of safety and security in their establishments, and furnish everything necessary to enable the employee to perform their obligations. 2. Ensure the proper condition …

If an employer requests another to perform work subject to the payment of remuneration, they shall be bound to pay the wage of the like, whether or not that person ordinarily works for a wage.

The employer shall be obliged to provide clothing and food for the employee, or either, if custom so requires, whether this is stipulated in the contract or not.

If the specified period for the work expires and circumstances require its extension, the contract shall continue to the extent necessary, and the employer shall be bound to pay the wage of the like for the additional pe…

If the employer terminates a fixed-term contract or a contract concluded for a specific work before the expiration of its term or completion of the work, without an excuse and without any act on the part of the employee …

Both the employer and the employee shall comply with the requirements imposed by special laws, in addition to the obligations set out in the preceding Articles.

1. The employment contract shall terminate upon the expiry of its term or the completion of the work, unless it is agreed to renew it. 2. If the parties continue to perform the contract after the expiry of its term or af…

1. If the employment contract is of an indefinite term or is not specified for the completion of a specific work, either party may terminate the contract at any time, provided that they notify the other party of their in…

1. The contract may be rescinded if an excuse arises that prevents its performance. 2. Either party may, in the case of an emergency related thereto, request the rescission of the contract.

The employment contract shall be extinguished in the following cases: 1. Mutual written agreement of the parties to terminate it. 2. Expiry of the term specified in the contract, unless it is extended or renewed in accor…

1. Claims arising from an employment contract shall not be admissible after the lapse of two years from the date of termination of the work relationship, except in relation to commission, profit sharing, and percentages …

Agency is a contract between a principal and an agent whereby the agent undertakes to perform a legal act in the name and for the account of the principal.

The agency shall be subject to the form required for the legal act that constitutes the subject matter of the agency, unless otherwise agreed.

The following are required for the validity of an agency: 1. The principal shall have the right to dispose of the subject matter of the agency in their own capacity. 2. The agent shall be eligible to perform the act for …

An agency may be general, special, conditional, or deferred to a future time.

1. Any act that is not an act of management and preservation requires a special agency specifying the type of act and the dispositions it entails, particularly in donations, sale, settlement, mortgage, acknowledgment, ar…

1. If the agency is expressed in general terms without specifying what is intended, it shall only grant the agent the power to perform acts of management. 2. Acts of management include leasing if its term does not exceed…

The agency shall not grant the agent capacity except in the performance of the matters specified therein and their necessary appurtenances according to the nature of each matter, prevailing custom, and the common intenti…

Subsequent ratification of a disposition shall be deemed equivalent to a prior agency.

1. The agent shall be obligated to execute the agency contract without exceeding its prescribed limits, except for what is more beneficial to the principal. 2. The agent may exceed the limits of the agency if it is impos…

1. If the agency is gratuitous, the agent shall exercise in its execution the care they exercise in their own affairs. 2. If the agency is for remuneration, the agent shall exercise in its execution the care of an ordina…

The agent shall be obligated to provide the principal with the necessary information about the progress of the agency's execution and to render an account therefor, unless otherwise agreed.

The agent may not use the principal's property for their own benefit; if they do, they shall be obligated to compensate the principal for any damage incurred as a result.

1. If there are multiple agents, they shall be jointly and severally liable when the agency is indivisible, or the damage suffered by the principal is the result of a common fault. 2. The agents, even if jointly and seve…

1. An agent may not delegate the performance of the agency to another person, unless they are authorized to do so by the principal or permitted by law. 2. If an agent entrusts another with the execution of the agency wit…

Contracts of gift, loan for use, pledge, deposit, loan, partnership, Mudaraba, and settlement upon denial, shall not be valid if concluded by the agent unless they are expressly attributed to their principal.

An agent authorized to receive does not have the capacity to conduct litigation, and an agent authorized to conduct litigation does not have the authority to receive except by special authorization from the principal.

It is not required to attribute the contract to the principal in contracts of sale, purchase, lease, and settlement upon acknowledgment. If the agent attributes it to the principal within the limits of the agency, its ri…

Property received by the agent for the account of their principal shall be deemed to be held by way of deposit. If it is destroyed while in their possession without transgression or negligence, they shall bear no liabili…

An agent authorized to purchase a thing without specifying its price may purchase it at the price of the like or with a slight unfairness.

1. A person appointed to purchase a specific thing may not purchase it for themselves, their ascendants, their descendants, their spouse, or for persons with whom the disposition would result in benefit or avoidance of h…

A purchase shall be for the agent if: 1. The principal specified the price and the agent purchases at a higher price. 2. The agent purchases with gross unfairness. 3. The agent declares the purchase of the property for t…

If an agent authorized to purchase pays the price of the subject matter of the sale from their own property, they may have recourse against their principal for what they have spent in the execution of the agency within t…

1. An agent authorized to sell the property of their principal may sell it at an appropriate price. 2. If the principal specifies the price of the sale, the agent may not sell it for a lower price. If the agent sells it …

An agent authorized to sell may not purchase for themselves what they are authorized to sell, nor may they sell it to their ascendants, descendants, spouse, or to persons with whom the disposition would result in benefit…

1. If an agent authorized to sell is not restricted to a sale for immediate payment, they may sell the principal's property for cash or on deferred payment in accordance with custom. 2. If the agent sells on deferred pay…

1. The principal has the right to receive the price of the subject matter of the sale from the purchaser, even if the right to collect it falls within the authority of the agent, and the purchaser may refrain from paying…

The principal shall be obligated to pay the agreed remuneration to the agent when the work is performed. If no remuneration is agreed upon and the agent is among those who customarily work for remuneration, they shall be…

The principal shall be obligated to reimburse the agent for what they have spent in the execution of the agency within the customary limits.

The principal shall be liable for any damage suffered by the agent as a result of the customary execution of the agency, unless the damage results from the agent's fault or from a foreign cause not attributable thereto.

If multiple persons appoint a single agent for a joint work, all the principals shall be jointly and severally liable toward the agent, unless otherwise agreed.

The provisions governing representation in contracting stipulated in this Law shall apply to the relationship between the principal and the agent vis-à-vis the third party dealing with the agent.

An agency shall be extinguished in the following cases: 1. Completion of the work entrusted to the agent. 2. Expiry of the term specified for the agency. 3. Death of the principal or their loss of legal capacity, even if…

The principal may revoke or restrict the authority of their agent at any time, unless the agency involves a right of a third party or was issued in the interest of the agent, in which case the principal may not terminate…

The principal shall be obliged to compensate the agent for any damage suffered as a result of revoking the agency at an inappropriate time, or without an acceptable justification.

1. The agent may withdraw from the agency if it does not relate to the interest of a third party, provided that the principal is notified of such withdrawal. 2. If the agency relates to the interest of a third party, the…