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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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The opinions expressed in this blog are those of the respective authors. ATB Legal does not endorse these opinions. While we make every effort to ensure the factual accuracy of the information provided in our blogs, inaccuracies may occur due to changes in the legislative landscape or human errors. It is important to note that ATB Legal does not assume any responsibility for actions taken based on the information presented in these blogs. We strongly recommend taking professional advise to ensure the best possible solution for your individual circumstances.
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ATB Legal is a full-service legal consultancy in the UAE providing services in dispute resolution (DIFC Courts, ADGM Courts, mainland litigation management and Arbitrations), corporate and commercial matters, IP, business set up and UAE taxation. We also have a personal law department providing advice on marriage, divorce and wills & estate planning for expats.
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