UAE Commercial Transactions Law — articles 101–200

Any shortage occurs in the sold item upon its delivery shall not be taken into consideration if custom allows such shortage.

1. Where the seller fails to deliver the specific item sold, the buyer may notify the seller of the performance within an adequate time limit. Where the seller fails to perform that obligation, the buyer shall have an op…

Where the two contracting parties agree that the sold item is to be delivered in batches, the buyer may ask for the rescission of the contract if the seller fails to deliver any of the batches on the fixed date. However,…

Where the buyer fails to pay the price on the date agreed upon, the seller may, after serving notice to the buyer, re-sell the goods. If the goods are sold, in good faith, at a price less than the price agreed upon, the …

1. The buyer, who has paid the full price, may ask the seller to give him a list of goods showing that the price has been paid. 2. Any person who expressly or implicitly accepts a list of the sold goods shall be deemed a…

1. Where the buyer refuses to take delivery of the item sold, the seller may apply to the court to establish the status of the same and grant him permission to sell same under the court supervision after the lapse of a t…

1. If, after the delivery of the sold item, it is found that the quantity or type of the goods delivered is different from that agreed or if the goods are defective, the buyer may not apply for rescission of the contract…

1. The buyer shall, in the cases mentioned in Article (107) above, notify the seller that there is a difference or a defect, within (15) fifteen days of the date on which the item sold is effectively delivered to him, an…

1. Where the item sold is a commodity protected by a registered trademark, it is permissible to agree that the buyer may not sell at a price less than a certain price. 2. The court may decide the non-compliance with this…

1. It is permissible to agree in supply contracts, where the supplier grants certain privileges to the buyer, to prevent the latter from buying goods similar to the item sold from another supplier for a period not more t…

An instalment sale contract shall be drawn up in two copies and shall state the specifications identifying the sold commodity, the price, and the period and terms of instalment payment. The seller shall deliver one copy …

The installments shall be paid at the place of residence of the seller, as stated in the sale contract, unless otherwise agreed upon. Where the installments are collected at the buyer's place of residence, the seller may…

1. Where the buyer fails to pay any installment of the price agreed, the seller may, after notifying the buyer, ask for rescission with damages if justified. However, if it is revealed to the court that the buyer has exe…

An agreement that the full price shall fall due, in case one of the installments is not paid on the maturity date, shall take effect only if the buyer fails to pay even though notice is served and (7) seven days have lap…

1. Where the ownership of the movable property sold is retained by the seller pending the payment of all installments of the price in full, the buyer shall acquire such ownership on payment of the last installment and th…

Where the third party's right is subsequent to the sale by installment contract, the condition related to the retention of ownership shall take effect to such third party if the said condition is made in writing in an ag…

A buyer may not dispose of the item sold before he has paid all installments, save where the seller agrees to the same in writing. Any disposition by the buyer in violation of this provision shall not apply to the seller…

The provisions of the preceding Articles regarding sales by installment shall apply even if the contracting parties have termed the sale as a lease.

1. The provisions of this Section shall apply to the voluntary sale of movables by public auction. 2. A public auction sale means every sale that any person may attend, even if bidding is confined to a specific class of …

1. Without prejudice to the provisions of the Civil Procedures Law and the laws regulating certain kinds of sales, the movables referred to in Article (119) above may be sold by auction only through an appraisal expert a…

1. The auctioneer undertaking the sale by public auction shall keep a specific book in Arabic or regular entries where he shall enter all the items intended for sale, the initial estimate of their value and names of thos…

Where the initial appraisal of the second-hand goods offered for sale at a public auction exceeds (AED 400,000) four hundred thousand dirhams, the appraisal expert shall publish the same according to the procedures and t…

1. A buyer who is awarded the auction shall pay half the price at the auction session and the balance when he receives the object for which he was the successful bidder. The delivery must take place within one week from …

The owner of the used auction room or electronic platform or the appraisal expert, as the case may be, shall for the fee or commission to which he is entitled have a right of lien over the price of items he sells at publ…

1. A resolution by the Minister of Economy, in consultation with the local competent authorities, shall be issued to regulate the practice of the profession of appraisal experts and the utilization of auction rooms and e…

1. Physical or virtual commercial businesses may not sell their goods by public auction except in one of the following cases and after obtaining the necessary licence from the local authorities: a. Final liquidation of t…

1. A physical or virtual commercial store and its branches located in the same city may sell its goods by putting them on sale according to the number of times, controls and time limits identified by the competent author…

Employees of the competent authority in the relevant Emirate shall have the right to monitor the implementation of the provisions of Articles (126) and (127) above. To that end, they may enter the commercial store which …

Any person violating the provisions of Articles (126), (127) and (128) above shall be penalized by a fine not exceeding (AED 40,000) forty thousand dirhams. In case of recidivism, a fine not exceeding (AED 60,000) sixty …

The parties may agree that the rules regulating international commercial sales issued by the International Chamber of Commerce shall apply instead of the provisions of this Section.

1. A "FOB sale" is one by which the item sold is delivered at the port of shipping on board the vessel designated by the buyer for its transport. 2. In FOB sale, the buyer shall conclude the maritime transport contract, …

1. The seller shall pack, secure and transport the item sold to the port of shipping and ship it onboard of the vessel designated by the buyer, on the specified date or within the time limit set for shipping. 2. The sell…

1. Where the item sold needs an export permit for it to be exported outside the State or any other governmental license, the seller shall obtain the same at his own expense. 2. The buyer shall undertake to obtain, at his…

The seller shall provide such assistance as will be needed to enable the buyer to obtain the bill of lading and such other documents as required to be issued in the country of shipping of the item sold, in order to enabl…

The seller shall pay all the sums due in connection with the item sold, including the export charges and the shipping expenses up to the moment when the item sold crosses, during its shipping, the barrier of the vessel, …

Where the arrival of the vessel, designated by the buyer for transporting the goods, is delayed beyond the expiry of the time limit set for shipping, or where the vessel departs the said port before expiry of the said ti…

Where the buyer fails to notify the name of the vessel at good time or if he reserves the right to fix the date of delivery during a set time limit and he fails to do so or to designate the port of shipping but fails to …

Where it is agreed that the item sold shall be delivered on the dock of the port of shipping where the vessel designated by the buyer is anchored, the sale shall be termed F.A.S. and such sale shall be governed by the pr…

1. A "CIF sale" is a sale concluded against a lump sum covering, in addition to the sold item price, the price of the item sold, the maritime insurance charges and freightage by vessel to the port of destination. 2. Good…

The seller shall conclude a transport contract for the goods with a reputable carrier, as per the usual conditions, and shall choose a suitable vessel to carry goods of the same type of the item sold. The seller shall fu…

1. The seller shall buy an insurance policy for the item sold from a reputable insurer covering the risks of transport and he shall assume all the costs and expenses required thereof. 2. The insurance policy shall be bas…

1. The seller shall be bound to pack the item sold and ship it on board the vessel within the time limit set for shipping, or within the period dictated by custom. The seller shall further bear the expenses of packing an…

1. Shipping of the item sold by the seller shall be proved by means of a bill of lading where the word "shipment" is mentioned. However, if the bill of lading states "under shipment fee", the buyer may prove the shipping…

1. The seller shall duly obtain a certificate of origin for the item sold and shall present it to the buyer, who shall bear the expenses related thereto, unless otherwise agreed upon. 2. The seller shall further provide …

1. The seller shall pay the sums due in connection with the item sold, until its shipment on board the vessel, including export fees. 2. However, the buyer shall bear import fees and charges and expenses to clear the ite…

The seller shall bear the consequences of the damage which may be sustained by the item sold, up to the moment when it crosses the barrier of the vessel. Such consequences shall thereafter pass on to the buyer.

1. After goods are shipped, the seller shall send, without delay, to the buyer a clean negotiable bill of lading addressed to the port designated for discharge. There shall be attached to the bill of lading a list of the…

1. The buyer shall not be bound to accept the documents sent to him by the seller if they do not conform to the stipulations of the sale contract. The buyer shall be deemed to have accepted such documents if he does not …

Where the vessel carrying the item sold arrives before the arrival of the documents or where the documents received are incomplete, the seller shall immediately, upon being informed of the same, carry out whatever action…

Without prejudice to the provisions of Article (108) above, the buyer shall receive the item sold upon its arrival at the port agreed upon, and the buyer shall bear such sums as will be due on the item sold during its tr…

Where the buyer reserves the right to fix a date for the shipping or to designate the port of discharge within a set time limit but he fails to issue specific instructions during such time limit, he shall be liable for a…

Where something contrary to the documents is detected and such contradiction does not exceed the limit allowed by custom, the buyer shall be bound to accept the same with a reduction of the price, as per the applicable c…

A contract which contains such conditions as will render the seller liable for the perishing of the goods after shipment, or makes the performance of the contract conditional to the safe arrival of the vessel, or which v…

A sale at the airport of departure is one by which the goods sold are delivered at the airport of departure by placing them at the disposal of the air carrier designated by the buyer or chosen by the seller.

1. The seller shall, after entering into the contract, undertake to deliver the goods at the airport of departure to the air carrier or to its representative at the place and on the date agreed upon or at the place desig…

1. The seller shall conclude a goods carriage contract, at the expense and responsibility of the buyer, if it is so requested by the buyer; or the seller shall perform the same where the buyer has not issued instructions…

1. The seller shall pay all duties and taxes due on the goods as a result of their export. 2. The seller shall provide the buyer with all the documents needed for the receipt of goods which are readily available to the s…

Where the air carrier or the other person designated by the buyer refrains from receiving the goods at the airport of departure, or where the buyer fails to provide the seller, within a reasonable time, with the instruct…

1. In the event where the seller is not bound to conclude the goods carriage contract, the buyer shall, at his own expense, organize the carriage of goods from the airport of departure to the airport of arrival. The buye…

Where the air carrier or any other person designated by the buyer refrains from receiving the goods, the buyer shall bear all additional costs arising therefrom, as well as any damage that may be sustained by the goods, …

The sale contract in the above international sales shall be separate and may not affect the relations between the seller, the buyer and the carrier to the carriage contract, or between the buyer and the bank in the docum…

1. A commercial mortgage is a mortgage executed on a movable property to secure a commercial debt. 2. Except for the restrictions stipulated herein or in any other law, a commercial mortgage may be proved by all means of…

1. A commercial mortgage shall be effective against a debtor or third parties only where the possession of the mortgaged item passes from the mortgagor to the mortgagee or to a third party appointed by both contracting p…

1. Where the mortgaged item consists of registered instruments, the mortgage thereof shall be made in writing with a waiver of such instruments stating that they are made as a security. This shall be marked on the instru…

1. A debtor who is indebted with a commercial debt may garnish in favor of his creditor by a written instrument a debt owed to him by a third party. In this case, the debtor shall deliver to the judgment creditor the ins…

A mortgagee shall take all the necessary measures to safeguard the mortgaged item and undertake the maintenance thereof. Where the mortgaged item is a negotiable instrument, the mortgagee shall on the maturity date carry…

A mortgagee shall use on behalf of the mortgagor all the rights and procedures relevant to the item mortgaged, as well as receiving its value, profits, interests and any other sums resulting therefrom. He shall however d…

A mortgagee shall, when requested by the mortgagor, deliver to him a receipt showing the nature, type, amount, weight and other distinguishing features of the mortgaged item.

1. Where a mortgage is effected on a fungible item, it shall remain in place even if the mortgaged item has been replaced by another item of the same kind. 2. Where the mortgaged item is non-fungible, the mortgagor may r…

1. Where the mortgagee fails to pay the secured debt on the maturity the debt, the mortgagor may, after the lapse of (7) seven days from the date of notifying the debtor of repayment, request the court to authorize him t…

Where the mortgage is decided for several properties, the mortgagee may designate the property to be sold, unless otherwise agreed upon. In all cases, the sale may cover only the sum needed to clear the mortgagee's right…

Where the market price of the mortgaged item decreases and becomes insufficient to secure the debt, the creditor may fix a suitable time limit for the mortgagor to complement the security. If the mortgagor refuses the sa…

Where the mortgaged property is perishable or is subject to deterioration or devaluation, or where its possession necessitates the incurring exorbitant expenses and the mortgagor is unwilling to replace it by another pro…

1. An agreement concluded at the time or after the establishment of a mortgage shall be null and void, and shall vest in the mortgagee, in the event that the debtor fails not repay the debt on the maturity date, the righ…

Where the mortgaged item is an instrument and the nominal value of which has not been paid in full, the mortgagor shall, when claiming the unpaid portion, present to the mortgagee the sums of money needed to pay such por…

1. Public warehousing is a contract pursuant to which the warehouseman, whether an individual, a company or a public person, undertakes to receive and store goods for the account of the bailer or any other person to whom…

1. A warehouseman may not practice in any capacity, either for himself or for others, any commercial activity having for goods of the same kind as the goods which he is licensed to keep in his warehouse and issue instrum…

1. The bailer shall provide the public warehouse with correct data about the nature, type, value and quality of the goods warehoused. 2. The bailer may examine the goods delivered to the public warehouse for his account …

1. The warehouseman shall be responsible for the goods handed over to him up to a sum not exceeding that estimated by the bailer. 2. The warehouseman shall not be held accountable for any loss or deficit sustained by the…

The warehouseman may, after notifying the bailer, apply to the court to which jurisdiction the public warehouse pertains to grant him permission to sell the goods warehoused if they are subject to immediate damage, and t…

1. The bailer shall receive from the warehouseman a storage receipt showing the bailer's name, occupation and domicile, as well as the type, nature and quantity of the goods warehoused, name and location of the warehouse…

Where the goods stored in respect of which a storage receipt and a pledge deed have been issued are fungible, they may be replaced by goods of the same nature and quality provided that a stipulation to that effect has be…

1. The storage receipt and the pledge deed may be issued in the name of or to the order of the bailer. 2. Where the storage receipt and the pledge deed are made to the order of the bailer, he may assign them together or …

1. The endorsement of the storage receipt and the pledge deed must be dated. 2. Where the pledge deed is endorsed separately from the storage receipt, the endorsement shall be accompanied by the authorization condition a…

1. The holder of both the storage receipt and pledge deed may receive goods warehoused. However, he may request that the goods be divided into several batches and to receive a storage receipt and pledge deed for each bat…

Where the debt secured by the pledge deed is not paid on the maturity date, the holder of the pledge deed separate from the storage receipt may request for the goods pledged to be sold, pursuant to the procedures set for…

1. The mortgagee shall have a priority right over all creditors for collecting his right from the price of the goods after deduction of the following amounts: a. Taxes and duties due on the goods; b. Judicial expenses in…

1. The holder of a pledge deed may not have recourse against the debtor or endorsers until the execution over the mortgaged goods has been effected and it has been established that it is insufficient to pay off the debt.…

Where the goods stored suffer an accident, the holder of the storage receipt or the pledge deed shall have all the rights over the insurance sum which accrues upon the occurrence of such accident as those he had over the…

1. In case of loss or perishing of the storage receipt, the holder thereof may apply to the Civil Court to which jurisdiction the public warehouse pertains for an order to be issued to deliver a copy to him of the said r…

1. A guarantor who has been presented in the case of loss of the storage receipt shall be discharged of liability upon recovery of the goods or upon the lapse of (3) three years if no claim for the recovery of the goods …

1. Where the bailer fails to recover the goods upon the expiry of the warehousing contract, the warehouseman may request the sale thereof, pursuant to the procedures set forth in Article (170) above. He shall collect the…

1. Without prejudice to any severer penalty, any person who establishes or invests a public warehouse without obtaining the license set forth in Clause (2) of Article (176) above shall be sentenced to imprisonment and/or…

A stock market or a commodities market may be opened in the State only after obtaining the necessary licenses according to the legislation governing stock markets and commodity markets in force in the State.

1. An agency shall be commercial when it concerns commercial activities. 2. The provisions of this Part shall apply to the extent that they do not conflict with the special Commercial Agencies Law referred to in this Law…

1. A commercial agency shall be deemed paid, save where otherwise agreed upon. 2. Where the agent's remuneration is not fixed in the agreement and is not stated in the Law, it shall be fixed according to customs, and in …

The remuneration shall accrue to the agent by the mere execution of the transaction assigned to him or if he proves that it was not executed due to reasons attributed to the principal. In all other cases, the agent shall…

A commercial agency, even though it has a general power of attorney, shall apply only to commercial business, save where otherwise agreed upon.

Where the commercial agency is granted for a specific commercial transaction, the agent may carry out all actions required to execute such transaction with no need to obtain an authorization from the principal.

1. The agent shall adhere to the compulsory and express instructions of the principal. If he violates such instructions without an acceptable excuse, the agent may refuse the transaction. However, as for guidelines issue…