UAE Commercial Transactions Law

Article 490 — Article (490)

Book Three: Banking Transactions · Part Six: Commercial Transactions of Islamic Financial Institutions · Chapter Two: Special Provisions for Certain Types of Contracts and Obligations to which Islamic Financial Institutions are a Party: Section One: Promise to Contract: Article (475) · Section Five: Salam: Article (488)

1. The sold item's sort, type, quantity and required specifications shall all be indicated in the Salam contract, along with the date of delivery, whether the seller provides the sold item by his own or buys it from a third party under a contract independent of the Salam contract. 2. The Salam contract shall create an obligation on the seller to deliver the sold item and not its price. The sold item delivery upon maturity shall be conducted as agreed in the contract. Neither a free-defect delivery nor a penalty on the sold item's late delivery may be stipulated in the contract, and any agreement to the contrary shall be null and void.

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