Void Contract
A void contract is an agreement that is legally unenforceable from the outset due to illegality, lack of essential elements, or violation of UAE public policy. Under Federal Law No. 5 of 1985 on Civil Transactions, contracts are void if they involve fraud, coercion, or illegal subject matter. Unlike voidable contracts (which remain valid until challenged), a void contract has no legal effect, and parties cannot seek enforcement in UAE courts. Businesses must ensure proper contract drafting to avoid entering into agreements that may be deemed void.
