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A contract is a legally enforceable agreement between two or more parties outlining their rights and obligations. In the UAE, contracts are governed by Federal Law No. 5 of 1985 (UAE Civil Transactions Law) and must meet key requirements such as mutual consent, lawful subject matter, and valid consideration. Contracts may be written, verbal, or implied, but written contracts are preferred for enforceability—especially in commercial and employment matters. UAE law recognizes electronic contracts and digital signatures, provided they meet authentication requirements under Federal Decree-Law No. 46 of 2021 on Electronic Transactions and Trust Services.
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