All You Need to Know About Force Majeure in UAE Contracts: Rights, Risks, and Legal Remedies

Are you in a state of disrupted agreement and want to know the applicability of force majeure UAE in your case? Unforeseen circumstances like global conflicts, pandemics, and government restrictions may occur in any business. Knowing force majeure and its applicability in UAE law is significant in protecting your rights as a client.

At RH & HALE, with the assistance of our experienced legal consultants in Dubai, we will assist you in understanding and effectively enforcing your contracts, especially in complicated circumstances.

What Is Force Majeure Under UAE Law?

Force majeure means any unforeseeable event that makes it impossible for a party to perform a duty. The UAE Civil Code states that force majeure may affect a contract in various ways, depending on the gravity of the situation.

Such events may comprise:

• Natural calamities
• Wars or global conflicts
• Government regulations
• Pandemics or emergencies

Force majeure, as a legal term, is often associated with the concepts of contract impossibility UAE and excuse of performance UAE.

Legal Basis: UAE Civil Code Force Majeure

The concept of UAE Civil Code on Force Majeure is mainly based on:

• Article 273 – Deals with total or partial impossibility of performance 

Key Principle:

• The obligation is terminated if it becomes impossible to perform. 
• The contract is subject to adaptation if it becomes partially impossible. 

This is the basis for contract cancellation in UAE law on Force Majeure.

Force Majeure Clause in UAE Contracts

Most agreements have a force majeure clause UAE that outlines:

• What constitutes force majeure
• Rights and obligations
• How to proceed

However:

• Not all force majeure qualify
• How the wording is used is important

Review of the agreement is important before considering the defense of force majeure.

Notice Requirement for Force Majeure

One of the most significant elements is the notice requirement force majeure. Generally speaking, in most contracts, it is required that:

• Notify other parties as soon as possible
• Prove that force majeure occurred
• Describe in detail how it affects performance

Non-compliance with notice requirements will lead to:

• A loss of legal protection
• Continued liability for performance

Contract Impossibility vs Difficulty

It is important to note that there is a distinction between:

Contract Impossibility UAE

• Performance is completely impossible 
• Contract may be terminated 

Difficulty (Hardship)

• Performance is still possible but burdensome 
• Contract may be adjusted, not cancelled 

UAE law does not permit force majeure on the grounds of inconvenience or financial loss.

Can You Cancel a Contract Under Force Majeure?

Yes, but only if certain conditions specified in contract cancellation UAE law are met. Such conditions include:

• The occurrence of an unforeseeable event 
• The impossibility of performance (not difficulty) 
• The giving of notice 

If these conditions are met, then:

• The contract is terminated 
• The parties are relieved of their obligations

Practical Application in Real Estate

Force majeure can also happen in property deals, especially in off-plan properties.

For example:

• Delay in construction due to global supply chain disruption
• Government restrictions

It is worth noting, though, that not all delays may be considered as force majeure. There are certain conditions which must be met in order for it to be considered as such.

To further enlighten you on how it can affect your property deals, it is recommended to check our articles on off-plan property cancellation before SPA in Dubai ([ADD MY ARTICLE URL HERE]) and cancelling off-plan property before Oqood registration ([ADD MY ARTICLE URL HERE]).

Common Mistakes to Avoid

There are a number of common mistakes that parties make in relation to force majeure UAE, and this often leads to legal problems:

• Assumption that any form of delay constitutes force majeure 
• Ignoring specific contract clauses 
• Failure to give proper notice 
• Failure to seek proper advice from a lawyer 

It is important that you avoid all these common mistakes so that your position is not compromised.

Why RH & HALE Can Help?

At RH & HALE, being one of the best law firms in UAE, we are here to assist you with expert legal services in UAE for contractual issues and disputes. Our assistance includes:

• Interpreting force majeure clauses
• Evaluating contract risks
• Advising on termination or continuation
• Representing clients in disputes

Are you experiencing difficulties in fulfilling your contractual obligations? Our team is here to ensure that your rights are protected in the best manner. 

Get in touch with us today for expert advice on your contractual obligations.

Conclusion

Force majeure is one of the most effective legal defenses. However, it’s important to remember that this is not universally applicable in all cases. The key is to recognize the extent to which your individual case meets the legal requirements under UAE law.

Before making any decisions, it’s always better to review your contract and take the right steps.

At RH & HALE, we can assist you in these situations with the right guidance and without making any mistakes.

Get in touch with RH & HALE today and review your contract.