Breach of Contract

A breach of contract occurs when one party fails to fulfill its obligations as specified in a legally binding agreement. Under UAE law, contracts are governed by Federal Law No. 5 of 1985 (UAE Civil Transactions Law), which allows parties to seek remedies such as compensation, contract termination, or specific performance. If a breach results in financial losses, the injured party can claim damages, provided they can prove actual harm caused by non-performance. Given the UAE’s pro-business environment, commercial contracts often include arbitration clauses to resolve disputes efficiently without resorting to lengthy court proceedings.

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Breach of Contract